(resend) cr/ monopolies> Baby Bell Merger(s) (fwd)


Richard Moore

(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

 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
 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

   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
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