SBC to acquire SNET for $4.26 billion: Baby Bell is first to join long-distance market with New England deal

Article Abstract:

SBC Communications acquired Connecticut-based telephone company Southern New England Telecommunications (SNET) for $4.26 billion in stock. The Texas-based SBC is aiming to become the first Baby Bell to enter the long-distance market. SNET claims a 40% share in the Connecticut state market since introducing the service in 1995. SNET also reported about 6% of its total 1996 revenue, or more than $100 million, from long-distance revenue. A key reason for SNET's long-distance success stems from the Telecommunications Act of 1996, which exempts local telephone companies from tougher restrictions on Baby Bells. The new regulation prevents Baby Bells from entering the long-distance business until they open their local markets, but it allows them to offer long-distance calling outside their own service regions. SBC also would establish a presence in the Mid-Atlantic and Northeastern service area, which Bell Atlantic presently dominates.

Long Distance Telephone Svc, Telephone communications, exc. radio, AT&T Inc., SBC, Southern New England Telephone Co.

---

Bell Atlantic, GTE confirm merger plan; some GTE holder balk at stock-swap award, valued at $52.22 billion

Article Abstract:

Bell Atlantic and GTE announced a $52.55 billion merger, but GTE shareholders are resisting the proposed stock-swap that would create a US telecommunications giant. Financial terms, which calls for Bell Atlantic to acquire GTE, would price GTE below the recent trading value of its shares. Bell Atlantic would exchange 1.22 of its shares for each GTE share, which closed at $54.06 on Jul 28, 1998. By comparison, GTE's share value had dropped 6.7% since news of transaction discussions broke on Jul 24, 1998. Other problems confront the deal, which would control around 63 million million local-telephone lines, or one-third of the US local market. First, regulators may require much more than one year to approve the merger. Second, GTE Chmn Charles R. Lee and Bell Atlantic CEO Ivan G. Seidenberg must overcome the hurdles of sharing power as co-CEOs.

Telecommunications, Management, Bell Atlantic Corp., GTE Corp., BEL, GTE, Seidenberg, Ivan, Lee, Charles R.

---

LCI to acquire USLD Communications in stock deal valued at $331.8 million

Article Abstract:

LCI International, in a move to raise its local-phone service presence, said it acquired USLD Communications in a stock deal valued at about $331.8 million, or $20 a share. Terms call for LCI to pay $20 of its shares for each of the outstanding 16.6 million USLD shares. USLD is a Texas-based provider that offers local service and long-distance service through a local switch. LCI ranks sixth among US long-distance providers, according to an FCC report on 1996 total operating revenue. LCI also 'resells' local service in 28 markets to corporate customers, who presently account for about two-thirds of its customers. The companies would account for $1.6 billion in 1997 annualized revenue and produce approximately 12.4 billion minutes of long-distance usage for 1997, according to LCI.

Domestic Voice Telephone Service, Domestic telephone services, Local telephone services, Local telephone service, LCI International Inc., LCI, Company Acquisition/Merger, USLD Communications Corp.

Similar abstracts:

• Abstracts: Excel agrees to buy Telco for $1 billion; deal would create big long-distance player. Lucent is set to buy leader in voice mail; AT&T spinoff will pay $1.8 billion for Octel
• Abstracts: Watch 800 companies stuff themselves into one phone booth; in the long-distance market, lean and mean just gets the door open
• Abstracts: How one company is quietly buying up the Internet. MCI meets with the EU on assets sale. WorldCom, MCI probe is widened
• Abstracts: IBM's new database software takes aim at Web-based market. IBM's profit tops forecasts on soft sales. IBM to revamp struggling home-PC business
• Abstracts: Retail store industry. part 12

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.