Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, October 13, 1993 TAG: 9310130155
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: Los Angeles Times
DATELINE: LENGTH: Short
The merger would create a dominant new player in the fast-changing world of information technology and entertainment. It would create a $44 billion colossus and give Bell Atlantic the lead among regional phone companies plunging into cable TV, in which TCI has a substantial market share.
While financial details of the alliance have not been disclosed, it is expected to eclipse other recent deals, including American Telephone & Telegraph's plan to acquire McCaw Cellular for $12.6 billion in stock and the ongoing battle over Paramount Communications.
"This is the wildest deal ever," said one veteran banker, recalling the unpredictable, high-stakes mergers of the 1980s, which were capped by the Time Inc.-Warner Communications and RJR-Nabisco deals. "This makes RJR look like a no-brainer," he declared.
Details are expected to be announced at a news conference in New York today, though analysts said it will be largely a stock swap. Bell Atlantic Chairman Ray Smith is expected to be chairman of the combined companies, the sources said, with TCI CEO John Malone staying in a lesser capacity.
On Wall Street, TCI shares traded as high as 29[ Tuesday before closing at 28], off\ of a share. Bell Atlantic gained 5/8 to close at 60, after tumbling 2 the day before. Monday, Bell Atlantic said it would invest up to $1 billion in a big Mexican cellular telephone company.
by CNB