(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. ~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~--~=-=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~