Hugh
A while back AIT and SBC announced their intention to merge into one company. I found my paper work from AIT concerning the merger and it states that for each share of AIT that you own you will receive 1.316 shares of SNC. The merger was initially expected to close mid 1999 but was delayed a few months and is now expected to be approved by this fall. The following news release is not the original but will give you an idea what this merger is all about.
Companies Answer ICC Chairman's Competition Issues in Final Filing
CHICAGO, June 7 /PRNewswire/ -- SBC Communications and Ameritech today made significant and comprehensive commitments to boost local phone competition in Illinois, making the combined companies an engine for growth and a tremendous force for competition throughout the state, across the Ameritech region and around the nation.
The companies also committed today to broadly deploy high-speed Internet access service and provide rural and low-income consumers with access to advanced telecommunications technology.
The new commitments, which build on several previously made to Illinois, were contained in a filing before the Illinois Commerce Commission (ICC), which last Friday requested additional information on the merger's competitive impact.
"We not only demonstrated in our filing that the merger will help competition, we're going the extra mile," said Edward E. Whitacre Jr., chairman and chief executive officer of SBC. "After today, there should be no doubt that the SBC-Ameritech merger is good for Illinois consumers, good for Ameritech employees and good for competition in the state."
"Two hearing examiners have recommended that the ICC approve the SBC- Ameritech merger because it meets all statutory requirements and will have no adverse effect on rates, service or competition," said Richard C. Notebaert, chairman and chief executive officer of Ameritech. "We have offered an abundance of evidence that this merger is positive for customers and for Illinois. Now we encourage the ICC to consider all of that information and the additional commitments we added today -- and approve this merger by the statutory deadline of June 24th. In our fast-changing, dynamic industry, our employees, our customers, and shareholders deserve an expeditious decision," said Notebaert.
The merger is supported by numerous labor organizations because of the substantial benefits to U.S. workers and consumers. The American Federation of Labor and Congress of Industrial Organizations, the Chicago Federation of Labor, the International Brotherhood of Electrical Workers, and the Communications Workers of America endorse the SBC-Ameritech merger.
Highlights of the new commitments made by the companies include:
-- Ameritech Illinois headquarters will remain in Chicago, as will
state headquarters in each of Ameritech's traditional states, as
promised by Whitacre in a May 10, 1998 letter to Notebaert.
Today's commitment assures consumers that Ameritech Corporate
and Ameritech Illinois' headquarters will remain in Chicago for
at least five years after the merger closes. Ameritech Illinois
headquarters will be sufficiently staffed to maintain its local
presence before government entities and community organizations.
-- High-speed Internet access via ADSL service will be made available
to Illinois consumers, on a broad and non-discriminatory basis
across the state.
-- SBC and Ameritech will establish a $3 million Consumer Education Fund,
a $3 million Community Technology Fund and a $1.45 million Community
Computer Center.
-- Detailed and comprehensive performance measures and benchmarks will
be implemented, with the input of the ICC and competitors.
SBC-Ameritech will be subject to specific and significant penalties
if any agreed upon measure or benchmark is missed.
-- Operating Support Systems (OSS) -- the electronic interfaces that
allow telephone companies to quickly and efficiently share information
in order to facilitate local competition -- will be improved and input
will be sought from the ICC and competitors through a comprehensive and
detailed collaborative process with specific and concrete timetables.
-- SBC-Ameritech will implement shared transport as set out in a detailed
proposal within 30 days of the merger closing date in Illinois.
-- Ameritech Illinois job levels will be at least the same after
two years, if not greater, than they are the day the merger closes.
These new conditions follow several that the companies previously made, including a promise to begin talks with the ICC to certify that Ameritech Illinois' local markets are open to competition and meet the 14-point checklist, enabling the company to enter the long-distance market. In addition, SBC has pledged to maintain the level and scope of Ameritech's considerable charitable giving and community involvement. The merger will have no effect whatsoever on how rates are regulated.
The companies also said that they believe this filing eliminates any need to extend the ICC's June 24 deadline for ruling on the merger. "It's been more than one year since we announced our merger, which promises to deliver growth," said Notebaert. "It's been approved by the Department of Justice and the Ohio commission, and supported by perhaps the broadest group of unions, business organizations, community groups, and elected officials who have ever endorsed a merger. Any delay in the ICC's timetable will only deny the benefits of the merger to consumers, employees and communities."
"SBC has a track record of making mergers work for everyone," said Whitacre. "In California, where we merged with Pacific Telesis, service has improved, competition has exploded, new products and services are widely available and 4,000 more people are now employed than before."
"When you balance our record of growth against what other companies are doing through their mergers - consolidating, cutting jobs and more - it's hard to understand how anyone other than our competitors can oppose this merger," said Whitacre.
SBC Communications Inc. (NYSE: SBC) (www.sbc.com) is a global leader in the telecommunications industry, with more than 37 million access lines and 6.9 million wireless customers across the United States, as well as investments in telecommunications businesses in 11 countries. Under the Southwestern Bell, Pacific Bell, SNET, Nevada Bell and Cellular One brands, SBC, through its subsidiaries, offers a wide range of innovative services. SBC offers local and long-distance telephone service, wireless communications, data communications, paging, Internet access and messaging, as well as telecommunications equipment, and directory advertising and publishing. SBC has more than 129,000 employees, and its annual revenues rank it in the top 50 among Fortune 500 companies.
Ameritech (NYSE: AIT) serves millions of customers in 50 states and 40 countries. Ameritech provides a full range of communications services including local and long-distance telephone and data, cellular, paging, security, cable TV, Internet and more. One of the world's 100 largest companies, Ameritech (www.ameritech.com) has 70,000 employees, 1 million shareowners and $30 billion in assets.
SOURCE Ameritech
/CONTACT: Selim Bingol of SBC Communications, 210-351-3991, pager,
800-517-7022, or e-mail, bingols@corp.sbc.com; or Lisa Kim of Ameritech,
312-220-2377, pager, 800-800-9725, or e-mail, lisa.s.kim@ameritech.com/
/Web site: sbc.com
/Web site: ameritech.com
(AIT SBC)
AMERITECH CORP - AIT
Price 67.00
Net Change -1 1/4
Volume (000) 1867
Day High 69 3/8
Day Low 66 1/2
SBC COMMUNICATIONS - SBC
Price 51 7/8
Net Change -1 3/16
Volume (000) 2907
Day High 53 9/16
Day Low 51 5/8
as of
08/21/99 13:47 PM EDT
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