Pacific Telesis plan to split up poses challenges; proposal would split off the cellular operations from phone business

Article Abstract:

Pacific Telesis Group intends to spin off PacTel Corp, its $1 billion cellular telephone business. PacTel will function as a lightly regulated mobile phone and paging company. Pacific Telesis, which will continue to own Pacific Bell, Pacific Bell Directory and Nevada Bell, will go on as a traditional, strictly regulated telephone monopoly. Accomplishing the spinoff will require about a year. Without its fast-growing wireless businesses, Pacific Telesis will face competitive challenges. The company must compete for licenses to build and operate wireless phones and data devices. At the same time, the company must cut costs, upgrade its networks and encourage use of its networks despite continuing slowed economic conditions.

Radiotelephone communications, Holding companies, not elsewhere classified, Management, Cellular telephone services industry, Cellular telephone services, Regional Bell Operating Companies, Spinoffs (Corporate), Strategic Planning, Reorganization, Cellular Radio, Spinoff Company, Bell Regional Holding Companies, Pacific Telesis Group, PacTel Corp.

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GTE, Contel agree in principle to merge in $6.2 billion stock swap

Article Abstract:

Contel Corp and GTE Corp have issued a memorandum of understanding, agreeing in principle to a merger via stock swap that would create the largest local-exchange telephone company in the US. The stock swap deal will involve GTE issuing 1.27 common shares for each of Contel's 160 million outstanding shares. The transaction is valued at $6.2 billion. The combined company will have 50 million potential cellular subscribers, and 17.7 million access lines, more than any of the seven bell regional holding companies. Contel's stock jumped $7.125 to $35.125 on the news; while GTE's fell $1.25 to close at $29.75.

Telephone companies, GTE Corp., GTE, Telephone Company, Merger, Securities Transfer, Contel Corp., CTC

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