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Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: Vern Shaver who wrote (1037)	6/4/1998 12:38:00 PM
From: MangoBoy	Read Replies (1) \| Respond to of 3873

[Cable Michigan Agrees to Sell to Avalon Cable in $435 Million Cash-For-Stock Deal] (cash for LVLT. -- mark) In Connection With Transaction, Cable Michigan Proposes to Acquire All Outstanding Shares of Mercom, Inc. PRINCETON, N.J., June 4 /PRNewswire/ -- Cable Michigan Inc. (NASDAQ:CABL) announced today that its Board of Directors had reached a definitive agreement to sell the company to Avalon Cable for $40.50 per share in a cash-for-stock deal valued at $435 million, subject to certain possible closing adjustments. "Cable Michigan's Board began exploring strategic alternatives last month, including joint ventures, mergers and other business combinations," said David C. McCourt, Chairman and CEO. "This process resulted in our decision to sell the company for approximately 11 times cash flow. We had no plans to sell Cable Michigan, but its solid reputation, the recent jump in the valuation of cable properties and other current changes in the cable environment presented an opportunity we could not ignore." McCourt said that Avalon Cable intends to retain Cable Michigan's current employees and continue the company's existing business plan. ABRY Partners, Inc., a Boston-based private equity fund which invests principally in media and communications businesses, is the principal investor in Avalon. "David Unger, CEO of Avalon, and I look forward to the opportunity to continue to grow and improve the operations of Cable Michigan and Mercom," said Joel Cohen, President of Avalon. As part of the transaction, Avalon has also authorized Cable Michigan to acquire the outstanding shares of Mercom, Inc. (NASDAQ:MEEO) at a price of $11 a share. Cable Michigan has made a proposal to Mercom at $11 per share, and expects Mercom to establish a special committee composed of independent directors to evaluate the proposal. Cable Michigan was represented in the transaction with Avalon by Merrill Lynch & Co. The transaction is expected to close in the fourth quarter of 1998. The transaction is subject to shareholder approval, regulatory approvals and other customary conditions. No assurances can be given that any transaction will take place. Cable Michigan, Inc., which owns 62% of Mercom, Inc., is the nation's largest publicly held cable company with all of its subscribers located in one state. Cable Michigan serves more than 210,000 subscribers in municipalities surrounding Grand Rapids, Traverse City, Lapeer and Monroe. Cable Michigan became its own separate, publicly traded company on September 30, 1997, when it was spun off from the former C-TEC Corporation.