NCR establishes an employee stock plan

Article Abstract:

NCR Corp announces a $500 million employee stock ownership plan to stave off the hostile takeover attempt of AT&T. The plan could potentially control eight percent of the company's stock and prevent AT&T from removing NCR's 13-member board at the Mar 28, 1991 special meeting requested by AT&T. The NCR board also approves a special $1 dividend payment to shareholders in the hopes of encouraging more votes in favor of retaining NCR's board. The employee stock ownership plan is expected to purchase a new issue of 5.5 million shares of preferred stock that can be converted into about 8 percent of NCR's common stock. NCR does not require outside financing to buy the newly issued stock. Analysts believe AT&T still has a good chance of obtaining four seats on NCR's board on Mar 28, since 66 percent of NCR shareholders voted in favor of AT&T's tender offer of $90 a share.

Management, Planning, Stocks, Acquisitions and mergers, Employee benefits

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A.T.&T. says tender offer for NCR stock yields 70%

Article Abstract:

AT and T claims to have received tenders for about 70 percent of NCR Corp's common stock in the telephone company's ongoing takeover effort. Analysts say the 70 percent figure represents very strong stockholder support for AT and T, and will increase the pressure on NCR's board to begin negotiations. NCR has heretofore steadfastly refused to negotiate the merger, saying that AT and T's $90 a share offer is grossly inadequate. AT and T also reports that a majority of NCR stockholders support a special shareholders meeting where AT and T will seek the ouster of NCR's board. Under the law AT and T must garner an 80 percent vote of NCR's shareholders to remove the board. NCR's board will seek to avoid any special meeting and may postpone the annual shareholders meeting scheduled for April 1991.

Telecommunications services industry, Telecommunications industry, Telephone companies, Telephone Company, Stockholder Accounting

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Digital stock soars on plan to pare costs; company may make first layoffs in effort to cut expenses faster

Article Abstract:

DEC stock rises four percent and closes at $57 a share on Dec 12, 1990, after the number two computer maker announces it may begin layoffs to expedite its cost reduction strategy. The $2.375-a-share rise in one day is seen by industry observers as a positive response from investors, who are encouraged by DEC's first-ever plan to layoff employees. DEC's $1 billion cost reduction plan also includes closing some plants and moving out of leased buildings and into buildings it already owns. The computer maker will also cut its travelling budget, cancel newspaper subscriptions and limit the number of consultants it hires.

Business planning, Layoffs, Digital Equipment Corp., DEC, Layoff, Cost control, Cost Reduction

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