SBC Communications to acquire Ameritech in a $55 billion deal; aggressive Baby Bell builds a network resembling Ma's former franchise: and then there were four
Article Abstract:
SBC Communications is nearing an acquisition of fellow Baby Bell Ameritech, according to insiders. The expected stock swap, valued at more than $55 billion, could be announced as soon as today, the insiders added. Completion of the deal would reduce the number of remaining Bells to four, compared to seven formed from the 1984 breakup of the old AT&T. SBC would become the top US local phone monopoly, with annual revenue of more than $40 billion. Its business would control more than 57 million lines in 13 states spanning California, Texas, Illinois and all of Connecticut. The arrangement not only would boost SBC's Midwestern presence, it also would tower over WorldCom's pending $37 billion takeover of MCI. Such a move would add pressure on large competitors like AT&T and GTE to increase their size. Telecommunications companies are vying to combine local, long-distance and other customers services in an increasingly deregulated environment.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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WorldCom, MCI deal could rewrite script for a new phone era; Ebbers wins bidding war with $37 billion offer; BT exits with big gain; madcap Manhattan weekend
Article Abstract:
MCI accepts WorldCom Inc's offer and will be taken over in a stock deal valued at $51 a share, or $37 billion. The arrangement overrides WorldCom's previous $41.50-a-share stock offer, as well as a subsequent $40-a-share cash bid from GTE Corp. WorldCom's offer includes a $7 billion buyout of a 20% stake in MCI owned by British Telecom (BT). If GTE makes no counterbid, and if regulators approve WorldCom's offer, an MCI-WorldCom combination could emerge as one of the strongest communications companies. MCI is the second-largest long-distance company after AT&T, and WorldCom controls extensive local networks and important Internet 'backbones.' When the news of an agreement was released, WorldCom's shares fell $2.125 each, to $31. MCI's shares increased $4.625, to $41.50.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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