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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Jing Qian who wrote (9040)	5/4/1999 9:53:00 PM
From: E. Davies	Read Replies (1) \| Respond to of 29970

AT&T, Comcast reach pact clearing AT&T-MediaOne deal biz.yahoo.com NEW YORK, May 4 (Reuters) - AT&T Corp. (T - news) and Comcast Corp. reached an agreement late Tuesday clearing the way for AT&T's $56.4 billion takeover of MediaOne Group Inc. (UMG - news), the nation's No. 3 cable company that was snatched from a deal with Comcast by the telephone giant's superior offer. According to a source close to the situation, No. 4 cable company Comcast (CMCSA - news) has agreed to take 2 million cable subscribers from both MediaOne and AT&T in return for its blessing of the AT&T-MediaOne deal, announced yesterday. Comcast will also receive a $1.5 billion deal break-up fee. AT&T's agreement with Comcast is contingent on closure of the MediaOne's takeover by AT&T, the source said. AT&T, the No. 1 U.S. long-distance telephone company, in one swift move earlier this year became the No. 2 cable company by purchasing Tele-Communications Inc. for $55 billion. Spokesmen for AT&T, Comcast and MediaOne were not immediately available. AT&T has said a MediaOne merger is important because it would give it a major cable presence in 18 of the top 20 U.S. markets, allowing AT&T to ''bring broadband video, voice and data services to more communities more quickly than we could separately or, in MediaOne's case, with any other company.'' If it completes the MediaOne transaction, AT&T -- already with about 11 million subscribers, will unseat Time Warner Inc. (TWX - news) as the largest cable TV company in America. When Comcast and MediaOne announced their friendly agreement on March 22, they said together they would have 11 million cable subscribers. On April 22, AT&T made its surprise bid for MediaOne in an attempt to unravel Comcast's $48.2 billion pact to acquire MediaOne. AT&T has offered $30.85 in cash plus 0.95 shares of AT&T stock for each MediaOne share, while Comcast's offer, days ago abandoned by MediaOne, was for 1.1 Comcast Class A shares for every MediaOne share. Comcast has until Thursday to come up with a counter-offer to try and woo MediaOne back. **** Bribery. Its a cheap trick, but it works! Comcast ends up with 2 Million more subscribers and $1.5 Billion for a couple weeks work. I wonder if there might be some unspoken agreement that Comcast will stay with ATHM. Eric