US West plans two classes of stock, splitting phone holdings, new ventures

Article Abstract:

Regional Bell US West may create two new classes of stock to separate the stock values of its local telephone business from its cable and wireless service operations. Company officials declined to comment on the matter, but industry analysts expect US West shareholders to vote on the issue in the fall of 1995. As of Apr 1995, US West had a stock-market valuation of $19.6 billion. However, by creating new non-telephone shares, the company could generate more valuable currency to make new investments in the cable industry. Regional Bells typically trade at a rate of 70% to 80% of the price-to-earnings multiples on the Standard and Poor's 500 stock index. Cable and wireless firms, in contrast, can trade at higher rates based on a multiple of cash flow per share. Under the US West plan, the non-telephone business would not be split up into a separate subsidiary, but rather 'letter' stocks would be offered that would reflect the financial value of the nonphone businesses.

Internet services, Telephone company, Telephone companies, Wireless network, Wireless LANs, Cable television, Securities, U S WEST Inc., USW, Regional Bell Operating Companies, Company securities, Cable television/data services, Company Financial Information

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AT&T is expected to purchase Teleport in a stock deal valued up to $11 billion; long-distance giant to get long-awaited entrance into local phone service

Article Abstract:

AT&T is nearing an acquisition of local telephone company Teleport Communications for between $10 billion to $11 billion in stock, according to insiders. AT&T's board is expected to vote on the acquisition on Jan 8, 1998, and the purchase could be announced Jan 9, 1998, the sources said. Both AT&T and Teleport declined to comment, but people familiar with the situation said the companies reached tentative financial terms earlier in Jan 1998. AT&T reportedly will exchange slightly less than one of its common shares for each Teleport share. The Teleport shares will be valued at $56 a share, or slightly more, on a fixed swap ratio of AT&T shares. Teleport, with local phone networks in more than 60 US markets, offers its services primarily to business customers. The deal would enable AT&T to compete directly with Baby Bells' local markets, whose penetration has proved more difficult and expensive that expected.

Telecommunications, AT&T Corp., T, Teleport Communications Group Inc., TCGI

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WorldCom reaches pact to buy MFS in $14.4 billion stock deal; transaction creates a powerful player in telephone sector

Article Abstract:

WorldCom Inc has agreed to acquire MFS Communications Co for $55 a share, or about $14.4 billion, to create MFS WorldCom Inc, a telecommunications company with $5.4 billion in annual revenue, more than 500,000 business customers, and market capitalization in excess of $23 billion. The new company is nearly the size of several of the regional Bell operating companies and is bigger than MCI. MFS recently acquired Internet service provider UUNET Technologies for $2 billion, which means the new entity will offer local, long distance and Internet access to business customers around the world. MFS WorldCom is forecast to record $700 million in revenue internationally, and its total revenues are projected to grow at a 30 percent annual rate. This and other mergers in the telecom industry are the result of new laws and new directives from the FCC giving preferential treatment to such carriers as WorldCom and MFS.

Management, MCI Inc., MFST, MFS Communications Company Inc., WCON, MFS WorldCom Inc.

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