Today's WSJ...
Dci Telecommunications Inc.
The Wall Street Journal -- December 8, 1998
Business Brief -- IXC COMMUNICATIONS INC.:
DCI Pact, One-Time Charge
Take Care of Customer Debt
IXC Communications Inc. said it will take a one-time charge of about
$14 million in the fourth quarter to resolve a debt owed by one of its
customers. The Austin, Texas, telecommunications concern said that DCI
Telecommunications Inc. of Stratford, Conn., assumed management
control of the unnamed customer. IXC said it agreed to accept 4.25
million shares of DCI, valued at about $16 million, in exchange for
the debt. Under the agreement, DCI, an international provider of
telephone services, can repurchase its shares, equal to about a 13%
stake, through April 1 at a price of about $18 million. If the shares
aren't repurchased, the number of shares IXC owns will be adjusted to
have a value of at least $18 million. IXC said it also will provide
services to DCI, which will give it a new business opportunity.
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