Tele-Communications Inc. is making a bid to acquire the 46% of United Artists Entertainment Co. it does not currently own in an estimated $1 billion equity offering.
Cable giant is proposing a tax-free merger in which shares of UAE’s common stock would be exchanged for shares of TCI Class A common stock and outstanding UAE preferred stock would be converted into comparable TCI-issued preferred stock.
Each outstanding share of UAE’s class A or class B common stock would be converted into 95% of a share of TCI class A common stock.
At the same time, holders of previously issued rights requiring TCI to purchase UAE shares are being offered $4.75 per right. That places the value of that portion of the offer at around $145 million.
The deal will help TCI make its operations more efficient and will eliminate the costs of maintaining UAE as a separate public company, said TCI spokesman Bob Thomson.
TCI has set a May 24 deadline for the offer.