Citicorp to purchase AT&T's card unit: business expected to fetch $3 billion to $4 billion, reflecting hot bidding

Article Abstract:

Citicorp is expected to acquire AT&T's Universal Card credit-card portfolio for approximately $3 billion to $4 billion, according to insiders. The deal includes some $1 billion for Citicorp's right to retain the phone giant's name and calling-card privileges until 2007, according to the sources. Citicorp already leads US issuers in the fierce credit-card market, with a domestic card portfolio of nearly $46 billion and more than $9 billion portfolio outside the US. The purchase will raise Citicorp's US total to $60 billion, about 50% larger than that of any rival. Profits should rise for Citicorp, because it can use its size to lower overhead in areas that include card solicitation and debt collection. Universal Card's 3rd qtr 1997 earnings totaled just $24 million, compared to a $48 million profit in the 2nd qtr 1997. Questions remain whether Citicorp will the AT&T no-fee pledge, which prevented the company from lowering rates because of its reliance on interest payments.

All Other Plastics Product Manufacturing, Plastic Credit & ID Cards, Product information, Credit cards, AT&T Corp., T, Citicorp, CCI, Transaction cards, Company product acquisition

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Dynatech management, buyout firm to buy telecom firm for $900 million

Article Abstract:

Clayton, Dubilier & Rice and Dynatech's (CD&R) management have agreed to acquire Dynatech for $47.75 a share, or approximately $900 million, according to sources. Financial terms call for CD&R, a New York buyout company, to pay a 30% premium over Dynatech's closing stock price of $36.75 a share on Dec 19, 1997. CD&R will make an equity investment of slightly more than $275 million to purchase a diluted stake of approximately 70% in Dynatech. Dynatech's top 300 employees will form a 25% stake in the company, while current shareholders will own a 5.3% stake. The 2,050-employee Dynatech, with facilities in five states, offers products and services that enable phone-service providers to monitor and service their networks. Dynatech recorded $362 million in annual sales from continuing operations in the year ended Mar 31, 1997.

Clayton, Dubilier & Rice Inc., DYTC, Acterna Corp.

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Bold stroke; Olivetti reinvents itself once more, this time as a telecom giant; chief Colannino's brash move on Telecom Italia portends new greatness, if it works; 'the Italians love to talk'

Article Abstract:

Olivetti SpA has morphed from being a typewriter company to a personal computer maker and is now moving into telecommunications with a $60 billion offer for Telecom Italia. The deal reflects changes that have occured since deregulation of the European telecom industry, with others expected soon. Telecom Italia is the first former government monopoly to become a major takeover target. Telecom Italia is thought to be a good investment in that telecommunications services are in high demand in Italy.

Italy, Telecom Italia S.p.A., Olivetti S.p.A., Telecommunications Industry

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