AT&T to Acquire Cable Giant Tele-Commuications Inc.

ALEXANDRIA, VA (June 24, 1998) /FOOLWIRE/ -- Cable TV operator Tele-Communications Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TCOMA)") else Response.Write("(Nasdaq: TCOMA)") end if %> jumped $3 1/516 to $42 5/8 this morning on news that it will be acquired by telecommunications powerhouse AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: T)") else Response.Write("(NYSE: T)") end if %> in a stock-swap valued at around $48 billion. AT&T will issue 0.7757 of its shares for each TCI Group Series A share and 0.8533 shares for each TCI Group Series B share.

Ma Bell will join its current consumer long-distance, wireless, and Internet services units with TCI's cable, telecommunications, and high-speed Internet businesses to form a new subsidiary, AT&T Consumer Services, which will trade as a "tracking stock" on the New York Stock Exchange. AT&T also plans to issue separate tracking stock to holders of TCI's programming arm, Liberty Media Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LBTYA and LBTYB)") else Response.Write("(Nasdaq: LBTYA and LBTYB)") end if %>.

In addition, AT&T announced that its second-quarter earnings will beat analysts' expectations of $0.80 to $0.82 a share by $0.08 to $0.10 thanks to earlier-than-expected benefits from its ongoing cost-cutting measures. Taking into account the merger with TCI, the company anticipates 1998 EPS of $3.35 to $3.45.

For more information:
-- Merger press release
-- UPI story

Discuss the merger at:
-- AT&T message board
-- Telecommunications Inc. message board