Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, August 17, 1993 TAG: 9308170076
SECTION: BUSINESS PAGE: B5 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Short
AT&T is a global leader in long-distance telephone service, while McCaw is a pioneer in cellular, paging and other wireless communications services that make up the fastest-growing segment of the telecommunications industry. McCaw operates chiefly under the Cellular One brand name.
The deal, which is subject to regulatory and other approvals, would give McCaw shareholders one share of AT&T stock for each share of McCaw common.
AT&T's stock fell $1.62 1/2 to $60.75 a share in heavy trading of nearly 3.8 million shares on the New York Stock Exchange. McCaw jumped $5 a share to $56.25 on the Nasdaq in brisk trading.
AT&T and McCaw said their boards have approved the merger. Both said they expect no lost jobs as a result of the merger.
AT&T Chairman Robert E. Allen called wireless communications services "absolutely central to AT&T's networking strategy and key to the company's future earnings growth."
McCaw's chairman and chief executive, Craig O. McCaw, said bold steps such as the merger must be taken if the United States is to remain the leader in development of wireless communications.
New York-based AT&T had revenue of $64.9 billion in 1992 and has about 316,000 employees. McCaw, based in Kirkland, Wash., had 1992 revenues of $1.74 billion and directly employs 4,400 people.
by CNB