Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, February 19, 1992 TAG: 9202190153
SECTION: BUSINESS PAGE: B6 EDITION: METRO
SOURCE: Associated Press
DATELINE: CHICAGO LENGTH: Medium
CONTEL SOLICITS BUYOUT OFFERS
The telecommunications company Centel Corp. said Tuesday it has put itself up for sale.The Chicago company announced Jan. 23 it had hired investment bankers to find ways to boost its stock value. Centel's directors voted Monday to solicit bids after hearing expressions of interest.
Centel has about 226,000 access lines to customers in Virginia. It serves Martinsville, Lexington, Rocky Mount, Bassett, Front Royal, Charlottesville, Farmville and South Boston.
William White, spokesman for the company in Chicago, said a sale would have no impact on customers. He said the terms of the offer to sell require a buyer to protect shareholders, customers, communities and employees.
Centel also operates cellular phone systems at Danville, Lynchburg, Charlottesville and several Tidewater communities.
Analysts have said the company, if sold in one piece, could be worth as much as $5.5 billion, or about $65 a share. Prior to the announcement, Centel stock had been trading at about $44.50 a share.
Chairman John Frazee said in a statement that the Centel board would not decide whether to sell all or part of the company until after reviewing the proposals, which are due by April 16.
Frazee said last month that Centel might sell itself because the company wanted to manage its own destiny during a coming consolidation of the telecommunications industry.
Centel earned $159.9 million last year on sales of $1.18 billion.
Business writer Mag Poff contributed to this story.
***CORRECTION***
Published correction ran on February 22, 1992.
A headline on Wednesday's Business page incorrectly identified Contel Cellular as a company that has put itself up for sale. As indicated in the accompanying story, the company for sale is Centel Corp.
Memo: CORRECTION