BT-MCI merger deal's value reduced

Article Abstract:

British Telecommunications (BT) and MCI have adjusted their merger accord to lower MCI shareholder value by an undisclosed amount. The surprise announcement coincided with formal FCC approval of BT's acquisition of MCI. FCC approval would allow the formation of Concert, a company with $42 billion in revenue. BT and MCI in Oct 1996 announced a record international $21 billion combination, with BT acquiring the remaining 80% of MCI shares. Terms of the original deal called for the exchange of each MCI share for 0.54 of a BT share and $6 a share in cash. MCI shareholder reduction probably will range from 15% to 20%, insiders say, as opposed to analysts' projections of 15% to 25%. The cash portion of the deal, meanwhile, will rise. Concert's share earnings may increase as a result of the development. MCI has been struggling lately in long-distance, local and wireless-phone services.

Telephone communications, exc. radio, Laws, regulations and rules, United States. Federal Communications Commission, British Telecommunications PLC, MCI Communications Corp., MCIC, Company Acquisition/Merger

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AT&T plans to sell leasing unit for $2.2 billion

Article Abstract:

AT&T signs a $2.2 billion contract agreement to sell control of its subsidiary AT&T Capital to a consortium consisting of AT&T Capital's principal management team. Babcock & Brown and GRS Holding are also primary investors in the deal, which company executives hope to complete by Sep 1996. AT&T Capital executives claim that the agreement will not result in lost jobs nor alter the company's primary business focus, that of offering financing to corporations that wish to lease telecommunications systems. AT&T had been seeking a buyer for AT&T Capital since its Sep 1995 announcement that the company would be splitting into three separate, wholly-owned corporations. Terms of the agreement call for AT&T to receive $45 per share, representing a $4 premium over AT&T Capital's Jun 5, 1996 closing stock price of $41 per share.

Telephone Communication, AT&T Corp., T, Contracts, Contract agreement, Divestiture, TCC, Divestment, AT&T Capital Corp.

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