AT&T believes merger to be called pooling of interest

Article Abstract:

AT&T wants to list its merger with NCR Corp as a pooling of interests; this procedure would make the all-stock transaction tax-free for NCR's shareholders. AT&T's plan is based on opinions solicited from the US Securities and Exchange Commission (SEC), NCR and the telecommunications company's own advisers. If permission to use the pooling accounting method is not forthcoming from the SEC, AT&T must rearrange its $110-a-share, $7.48 billion offer. According to AT&T, a new arrangement would involve 40 percent cash and 60 percent stock. Under such an arrangement, AT&T would carry 'good will' generated from its acquisition on its books for years. Good will refers to the amount by which a purchase price exceeds the book value of an acquired company. According to one industry observer, such good will could diminish annual earnings by 5 percent, in addition to AT&T's expected write down of about $1 billion over the 3rd and 4th qtrs in 1991.

Computer peripheral equipment, not elsewhere classified, Tax law, Finance, Telecommunications industry, Stockholders, Acquisition, Merger, Stockholder Accounting

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AT&T's bid for NCR ended debate over whether to abandon computers

Article Abstract:

AT and T's bid for NCR Corp ends a two-year debate over whether or not the telephone company will try to become profitable in the computer industry. The number one telephone company is frustrated that its long-distance and telecommunications business has to shoulder the costs of operating a computer business and wants to determine a solution. AT and T has decided that its computer business is critical for its overall corporate strategy: a communicating company with computing skills. AT and T decides to acquire NCR as a way to rescue its failed computer business strategy and lend credence to its commitment to the computer industry.

Business planning, Strategic Planning, Takeovers

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Similar abstracts:

• Abstracts: AT&T gets more leeway on business price policies. Bells close in on information services. FCC opens study today of competition within long-distance telephone sector
• Abstracts: AT&T lifts bid for NCR to $110 a share but in stock; telecommunications giant's offer is for $7.48 billion; computer maker balks

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