Big profits in acquiring little phones

Article Abstract:

Citizens Utilities of Stamford, CN, acquires more than 200 of GTE Corp's local phone networks for $1.1 billion in cash. Citizens Utilities has been making huge profits from operating small phone, power and water companies in such places as Elk Grove, CA, and Bullhead City, AZ. In 1992, the company earned $115 million on sales of $600 million. By keeping its debt low, it has amassed about $750 million in cash. The GTE companies' acquisition is testimony to the business acumen of Leonard Tow, Citizens' CEO. Citizens is interested in the small phone companies because they are less susceptible to the emerging competition from cable television companies. GTE, for its part, is trying to consolidate its remote operations. Citizens expects to pay for the GTE acquisition without having to go into deep debt.

Telephone and telegraph apparatus, Telephone communications, exc. radio, Gas transmission and distribution, Mergers, acquisitions and divestments, Telecommunications services industry, Telecommunications industry, Telephone companies, Investments, Citizens Utilities Co., GTE Corp., Business planning, Telephone Company, Acquisition

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Cable concern plans to offer 400 channels

Article Abstract:

Tele-Communications Inc, the country's largest cable television company, announces plans to install new digital technology, perhaps as early as 1994, that will eventually allow customers to receive up to 500 channels. Tele-Communications plans to fill the channels with a wide range of pay-per-view movies, interactive shop-at-home services, sports and other services. The new technology, co-developed by General Instrument Corp and AT and T, is expected to hasten the marriage of TV and computers. Tele-Communications expects to offer high-speed information services to owners of microcomputers. Owners of satellite dishes will receive the new technology even earlier, in the summer of 1993. The new technology is seen as yet another threat to traditional television broadcasters.

Cable and other pay TV services, Motion picture theaters, ex drive-in, Planning, Internet services, Cable television, Product introduction, Digital communications, AT&T Broadband and Internet Services Inc., New Technique, Digital Communication, Cable Television/Data Services, TCOMB

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