LIN backs takeover by McCaw; cellular operator accepts new offer over BellSouth's

Article Abstract:

McCaw Cellular Communications Corp will acquire LIN Broadcasting Corp for a bid of $3.38 billion, the largest bid ever in the short history of the cellular radio industry. McCaw's bid, an improved offer over its prior bid, comes just as LIN signed a merger agreement with BellSouth Corp, which is not expected to attempt to outdo McCaw. McCaw will buy roughly half of LIN's stock for $154.11 per share. McCaw already owns a substantial amount of LIN stock. McCaw's battle to acquire controlling interest in LIN and its large cellular market share began in Dec 1988. In Jun 1989, McCaw made an offer of $120 a share for controlling interest of LIN, which was rejected. Between Jun and Dec 1989, LIN and McCaw have gone back and forth over the stock price, with BellSouth entering the picture in Sep. LIN management has recommended that its board accept McCaw's most recent offer.

Acquisition

---

Lin chief a big winner in McCaw merger deal

Article Abstract:

Donald Pels, chairman of Lin Broadcasting, stands to make $174 million on the merger of his company with McCaw Cellular Communications. The sum presumes sale of Pels 1.3 million stock options at the sale price of $154.11 per share. Pels' deal is so lucrative that it has raised questions among some stockholders, who will not receive the same price per share. Regular share holders can sell 47 percent of their stock at the price Pels is getting, but McCaw can then wait up to five years to buy the remainder at the then current value, which some Wall Street analysts say may be $25 less a share. Still, share holders are not likely to complain too loudly: they have seen the stock rise some 92,600 percent from its low of 13 cents a share, in the 1970's, to the Jun 1989 amount of $115.88.

Television broadcasting stations, Analysis, Finance, Acquisitions and mergers, Investments, Stockholders, Cellular telephone equipment industry, Stockholder, Pels, Donald

---

Lin-BellSouth cellular merger set

Article Abstract:

Lin Broadcasting Corp announces a merger of its cellular telephone operations with those of BellSouth Corp. The announcement comes after Lin rejects McCaw Cellular Communications Inc's hostile bid. The merged company would have about 500,000 subscribers and would become the nation's second largest cellular phone service after McCaw. Lin plans to spin off its television broadcasting units to stockholders as well as paying a $20 dividend and giving each shareholder a share in the newly merged company. The unusual part of the merger deal is the requirement of a Lin shareholder vote on the proposal. A BellSouth-Lin merger would require regulatory approval under Federal antitrust law.

COMMUNICATION, Services, Telecommunications services industry, Telecommunications industry, Telecommunications equipment industry, BellSouth Corp., BLS, Telephone systems, Telephone System, Mobile Phones

Similar abstracts:

• Abstracts: LightSurf piggybacks a tiny camera on a cell phone. Change of Direction at PeopleSoft. Board Member Of PeopleSoft Open to Merger
• Abstracts: New executive team moves up at Unisys. Control Data names new chief executive. President is named for MIPS Computer
• Abstracts: Pen-machine move made by A.T.& T. Digital buys 65% stake in Kienzle; computer maker seeks European growth and help in Unix systems
• Abstracts: Oracle picks ex-general as chairman; software supplier cites his long experience. Keeping software lead is new president's job
• Abstracts: A small lobby's large voice. Small company makes superconducting chip. I.B.M. and Toshiba plan joint development of flash memory chips; device, which can hold data with power off, could replace disks

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