Ameritech to buy 42% of Danish phone carrier

Article Abstract:

Ameritech said it intends to spend $3.2 billion to acquire a 42% stake in Tele Danmark, Denmark's national telecommunications carrier. The Bell company, which seeks to increase its European presence, surprised some analysts with its largest stake in a foreign carrier. Terms call for Ameritech to control six of the 12 Tele Danmark board seats. Ameritech also 'expects to influence the operation of the company in a very substantial manner, according to Ameritech CFO Oren G. Shaffer. Tele Danmark presently owns an approximately 80% market share, compared to 95% in 1996, when Denmark deregulated the telecom industry. Sweden's Telia and France Telecom are increasing their competition in a mature Danish market that reaches nearly all households. Danish access-line growth totaled about 2% for the year ended Jun 30, 1997. By comparison, the US market grew by 4.4%, and less-mature markets reported significantly higher numbers.

Tele Danmark A/S

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Ameritech to cut costs by $3 billion over five years

Article Abstract:

Ameritech says it will lower expenses by $3 billion through 2003. Plans call for introducing new services, using discipline to invest overseas and making eliminations that include numerous service centers and more than 1,000 jobs. The company hopes the strategy will allow it to sustain annual double-digit earnings growth. Technological advancements are expected to generate about $1 billion in savings by 2002, as well as making the company's network and employees more efficient. Ameritech also will follow through on its Mar 1998 announcement of reducing the number of customer-care centers from 17 to 15. Analysts also learned that Ameritech will lower its enhanced business centers from 11 to two. These moves will eliminate more than 1,000 jobs, including management positions. Ameritech's overall cuts, which would average about $600 million a year, would produce annual per-share savings of about 55 cents a share.

Management, Company restructuring/company reorganization, Reorganization and restructuring

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Ameritech to sell stake in overseas carrier

Article Abstract:

Ameritech said it plans to sell its 24.95% stake in carrier Telecom Corp. of New Zealand. Bell Atlantic, a partner that owns the same stake in the New Zealand carrier, said it may sell its holdings. Ameritech said it plans to apply proceeds from its stake, valued at $2.2 billion, to finance activities such as entry into the security-monitoring business and a European push. The sale would consist of a public offering that likely would take place early in 1998, according to Ameritech. Both Bells have roughly tripled their initial investments and improved efficiency since purchasing Telecom New Zealand from the government in 1990 for $2.46 billion. Bell Atlantic's plans call for issuing $2.6 billion in debt that will be exchangeable into Telecom New Zealand shares no earlier than May 1999.

Bell Atlantic Corp., BEL, Telecom Corporation of New Zealand Ltd.

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