Citicorp is said to be acquiring AT&T card unit
Article Abstract:
Citicorp has acquired AT&T's Universal Card credit card unit for $4 billion, according to bankers and advisers familiar with the discussions. The deal represents Citicorp's effort to grow its market share against rivals MBNA and Banc One, according to Sanford C. Bernstein & Co. Citicorp holds a 12.4% share of the market, followed by MBNA at 11.2%, BancOne at 9.8% and Chase Manhattan at 8.4%. Exploding charge-offs and fewer opportunities for easy growth rates have thrown the credit card industry into turmoil since Dec 1996. Several dominant players are emerging, with a second tier of businesses struggling to attract the critical high volume of users. Citicorp, the second-largest US bank, reportedly prevailed over General Electric and BankAmerica for the Universal Card unit that AT&T first put up for sale in Oct 1997. Universal Card subscribers offered annual fees for life, but Citicorp may revoke the attractive feature. Credit card business profits rely on card holders' large monthly balances and high interest rates.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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AT&T soon expected to name Hughes executive as its chief
Article Abstract:
AT&T will select C. Michael Armstrong as its chairman and CEO, according to an executive close to the company. Armstrong has been negotiating for months with the telecommunications giant to succeed outgoing AT&T Chmn and CEO Robert E. Allen. AT&T, with 1996 sales of $52.2 billion, will have culminated an executive search that began in Jul 1997. The search has intensified since recent takeover bids have rocked the surging telecommunications industry. Leading internal candidate John D. Zeglis has been promoted from vice pres to pres and COO, according to news agencies. Armstrong is a former IBM senior executive who since 1992 has transformed Hughes from an inefficient commercial electronics operation into a growing subsidiary that touts digital satellite TV systems.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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