Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AT&T -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (1561)	7/4/1998 6:02:00 PM
From: Raptech	Read Replies (1) \| Respond to of 4298

Frank; Armstrong would obviously disagree with your assumptions. Perhaps high risk (maybe not as high as initially appears) , but a potential jackpot. On a pro forma basis, before considering synergies, the company projects that AT&T Consumer Services could have 1999 revenue of approximately $33 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $7 billion to $7.5 billion. AT&T and TCI anticipate their merger will result in increased revenue and lower costs, producing synergies of approximately $2 billion per year beginning three years after the merger closes. For example, the merger is expected to improve TCI's cable service penetration and improve customer retention for AT&T's consumer long distance service. It will also help reduce the charges AT&T pays to local telephone companies to handle long-distance calls and allow both companies to reduce their respective customer care, billing and advertising expenses. AT&T itself will remain the world leader in business communications services and become the leader in wholesale networking services. On a pro forma basis, the company projects its 1999 revenues from those >businesses could exceed $29 billion and its EBITDA could reach approximately $12 billion. AT&T will continue to provide global communications, outsourcing and systems integration services to more than 15 million businesses and institutions. It will own and operate the world's most extensive and advanced communications network, the nation's largest wireless infrastructure, and, following the pending acquisition of TCG, a local access network reaching more than 250 cities from coast to coast. "AT&T is now better positioned for growth," said Armstrong. "When this transaction is completed, AT&T will be the undisputed leader in three of the fastest growing segments of the communications services industry - consumer, business and wholesale networking services." Rap

To: Frank A. Coluccio who wrote (1561)	7/6/1998 8:30:00 AM
From: limtex	Read Replies (1) \| Respond to of 4298

Frank and all - This is bordering insanity. Surely AT&T doesn't just go out and blow 100 years of effort on an ill thought out deal. Isn't that why investors invest in companies like AT&T rather than small cap stocks because they have much more robust managements and Boards. Did the Board know about this acquisition? Seems like a bit of a ridiculous question but in the circumstances it has to be asked. These guys on the AT&T Board aren't jokers, they are one of the resasons why individuals and funds choose At&T to invrest in. It simply isn't an issue to question whether AT&T did proper due diligence before commiting one of he most famous and important companies on the planet to a deal that is going to send its share price to the botttom of the ocean in a mattter of a few days. We are entitled to beleive and expect that the managment of AT&T never mind its Board wouldn't dream of doing something as irresponsible as that and then find that AT&T is subject to a class action causing the Directors a great deal of stress and problems in their careers for years to come. No it just couldn't have happened without due care and attention and it must have been thought and reasoned to be not just a good deal but a great deal and well worth commiting AT&T to it. If this isn't right what possible comfort do any shareholders have in their Boards from now on? L