Centel shares plummet 25% on Sprint's bid: several big holders indicate they oppose stock swap valued at $2.69 billion
Article Abstract:
The value of both Centel Corp and Sprint Corp stock fell on the New York Stock Exchange following the announcement of a planned $2.69 billion acquisition. Centel Chmn John Frazee defended the deal in meetings with investors and analysts, saying that the best possible deal had been obtained. Frazee said that the merger of Centel, with its cellular and local telephone operations, and Sprint, with its long distance business, would create a highly competitive carrier. But objections were heard from several prominent Centel investors, and the value of its stock fell $10.50 a share to $32. Meanwhile, the value of Sprint stock fell $1.375 to $23.125, reducing the value of the stock involved in the swap from $2.85 to $2.69 billion. The value of other major telecommunications firms also declined. McCaw Cellular Communications stock fell $1.50 to $27.50; LIN Broadcasting Inc fell $3.50 to $68 and Vanguard Cellular Systems Inc fell $2.75 to $25.25.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Several regional Bells expected to bid for parts of Centel but not entire firm
Article Abstract:
Several Bell regional holding companies, including American Information Technologies Corp, Bell Atlantic Corp, BellSouth Corp, Nynex Corp and US West Inc may make bids for certain assets of Centel Corp. Centel, based in Chicago and having share values of $60, has announced that it is putting itself up for sale. The $5 billion telecommunications company has not garnered the reaction to its sale that it had hoped. Analysts point to Centel's widely dispersed assets as a reason why reaction has been cold. Centel is involved with cellular communications in 17 states and and local telephone exchanges in six. The various regional Bell holding companies are more interested in licenses held by Centel that are located in the geographical areas in which they themselves operate.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Comment about this article or add new information about this topic:
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