AT&T, seeking to enter the cellular era, in talks for 33% of McCaw for $3.73 billion; voting control is discussed as rivalry heats up with the Regional Bells
Article Abstract:
AT&T announces that it has entered negotiations to buy 33 percent of McCaw Cellular Communications Inc plus a voting control option for the company. The move signals AT&T's entry into the cellular market and back into competition with the local Bell companies. If the contract is signed, AT&T will buy 47 million shares of McCaw for $42 per share, totalling $1.97 billion, plus 35.8 million McCaw shares through British Telecommunications PLC at $49 per share, totalling $1.75 billion. AT&T would buy an option for $100 million to eventually buy a voting interest of 75 percent for $600 million. AT&T would also take over three of McCaw's 15 board seats. As a result of the announcement, McCaw stock increased by $2.125 per share on heavy trading of 2.4 million. The agreement could be damaging for the local Bell companies and for MCI Communications Corp, AT&T's major competitor.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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McCaw insiders sell stock amid AT&T merger bid
Article Abstract:
McCaw Cellular Communications' high-level insiders sell some of their holdings as the company merges with AT and T. AT and T announced in Aug 1993 that it would purchase McCaw in a $12.6 billion stock exchange, and subsequently McCaw shares rose as high as $57.75 from $51.25. The merger is currently in a regulatory stage. The companies must prove that their union will not compromise the 1982 AT and T divestiture. Lawsuits by the Baby Bells may become obstacles as well. AT and T and McCaw executives do not expect fruition of the merger until mid-1994. The protracted process is giving insiders the opportunity to sell some direct holdings and options that are exercisable.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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