(Please excuse if this is a duplicate. -rkm)
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
Date: Mon, 1 Apr 1996
From: Brian Moura <•••@••.•••>
To: Multiple recipients of list <•••@••.•••>
Subject: Pac Bell & SBC Merger !
Baby Bell Merger
By EVAN RAMSTAD
AP Business Writer
NEW YORK (AP) -- SBC Communications Inc. and Pacific Telesis Group today
agreed to merge in a $16.7 billion deal, the first combination of two regional
Baby Bell phone companies.
They will become the nation's second-largest telecommunications company
after AT&T Corp. It is the most dramatic phone-company makeover since Congress
revamped the nation's telecommunications laws Feb. 8 and a harbinger of
similar
large combinations to come.
The merger gives SBC and Pacific Telesis greater size and financial power to
offer a broader range of communications services, something made possible by
the law.
The two companies are among seven formed from the 1984 break-up of the old
Bell System monopoly. Together, they serve the two largest states, California
and Texas, and will have 30 million phone lines.
The merged company will take the SBC name and be led by SBC chairman and
chief executive officer, Edward E. Whitacre Jr. Pacific Telesis chairman and
CEO Phil Quigley will become vice chairman of the combined company.
The merged company SBC will have more than 100,000 employees, revenues of
over $21 billion, operating cash flow of $9 billion, and income of almost $3
billion.
Although local Bell phone companies were not previously prohibited from
combining, the new telecommunications law created a competitive environment
that has made it more expedient for them to merge.
The law removed prohibitions that prevented long distance companies from
entering the local phone business and vice versa. Cable companies also were
freed by the law to offer phone service.
"In this new competitive environment, customer satisfaction, a strong market
presence, efficient and lower-cost operations, a substantial financial base
quality and new, innovative services will be crucial to success in the
marketplace," Quigley said in a statement.
The terms of the deal call for Pacific Telesis shareholders to receive 0.733
shares of SBC stock for each of their shares. Based on last week's stock
prices, Pacific Telesis shareholders would receive SBC stock worth about $39
per share.
When complete, SBC shareholders would own about 66 percent of the combined
company and 34 percent would be held by Pacific Telesis investors.
The corporate headquarters for the combined company will be in San Antonio,
where SBC has been based since 1993. The San Francisco area, home of Pacific
Telesis, will be the headquarters for the company's long distance operation,
Internet services and international businesses.
Pacific Telesis is in the middle of a program to eliminate 10,000 jobs in
its local phone operations by the end of next year. SBC is the only Baby Bell
company that hasn't slashed jobs.
"This historic merger is about growth -- growth in jobs, markets and
services to our customers," Whitacre said in a statement. "It is not about
downsizings or reduced employment opportunities. We see the future of this
industry offering tremendous opportunities and this merger positions the
company to realize these opportunities for our stakeholders."
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
Date: Mon, 1 Apr 1996
From: •••@••.•••
To: Multiple recipients of list <•••@••.•••>
Subject: U S West merger?
Has anyone on this board heard about U S West merging with another Baby Bell
or competitive access provider? I have heard some rumblings, and am curious
-Kevin Petrie
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~--~=-=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~
Posted by Richard K. Moore - •••@••.••• - Wexford, Ireland
Cyber-Rights: http://www.cpsr.org/cpsr/nii/cyber-rights/
ftp://www.cpsr.org/cpsr/nii/cyber-rights/library/
Cyberlib: www | ftp --> ftp://ftp.iol.ie/users/rkmoore/cyberlib/
Materials may be reposted in their _entirety_ for non-commercial use.
~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~--~=-=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~
