NCR's stock jumps on news of ESOP plan; traders say defensive move may draw a higher bid from AT&T, force sale

Article Abstract:

The price of NCR Corp's stock rises to $93.125 per share on news of the computer manufacturer's plan to implement an employee stock ownership program (ESOP). The $500 million ESOP, including a $1 per share dividend and two-cent per share quarterly dividend, comprises 7.9 per cent of NCR stock. NCR plans to keep AT&T from forcing the removal of NCR's board by forming a bloc of friendly stock ownership. AT&T needs an 80 per cent vote in order to toss out NCR's present board. The employee stock plan consists of 5.5 million new preferred shares NCR plans to issue to a trustee. NCR employees are able to purchase these shares for the next 25 years as part of a pension/retirement benefits plan. The trustee may vote all shares in alignment with NCR employee votes.

Telephone communications, exc. radio, Mergers, acquisitions and divestments, Prices and rates, Stocks, Acquisitions and mergers, T, Securities, Employee ownership, NCR Corp., NCR, Stock prices, Employee benefits, American Telephone and Telegraph Co., Stock, Price Increases, Takeovers

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Japanese find U.S. high tech a risky venture

Article Abstract:

Japanese foreign investments in US technology firms wane as companies find it risky and expensive. Japanese firms were on a five-year buying spree in the 1980s, but Japanese corporations invested only $29 million in 1990, down from $54 million in 1989, largely because of the risk involved. Kobe Steel Ltd, for example, invested $19 million in disk drive maker PrairieTek Corp then cancelled the deal after PrairieTek was late to market with a product. Kubota Corp lost a $130 million investment in Stardent Computer Inc, which plans to close because it cannot compete against established computer makers. Part of the problem is that although Japanese industrial companies have large amounts of cash and want to diversify, they have little technological expertise.

Prepackaged software, Computer storage devices, Computer industry, Foreign investments, Economic aspects, Japan, Investments, Venture capital, Kobe Steel Ltd., Strategic Planning, Stardent Computer Inc., Foreign Investment, Kubota Corp., PrairieTek Corp.

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