Competing Cox, AOLTW offers rebuffed
After weeks of talks and a hornet’s nest of rivaling bids, Comcast Corp. has finally won the hand of AT&T Broadband in a deal valued at $72 billion, creating the country’s largest cable TV carrier with more than 23 million subscribers nationwide.Comcast, which had failed in a $44.5-billion hostile bid to acquire the rival cable giant last July, won the day after a marathon meeting of AT&T’s board Wednesday soldiered through at least three competing offers from Comcast, Cox Communications and AOL Time Warner. All three companies had submitted bids to meet a deadline earlier this month — only to be rebuffed, reportedly in part over the size of the offers involved. The AT&T board collected a set of revised bids last Friday from all three companies. Major points of the Comcast deal:
- AT&T will spin off AT&T Broadband and simultaneously merge it with Comcast, forming a new company to be called AT&T Comcast Corporation.
- AT&T shareholders will receive approximately 0.34 shares of AT&T Comcast Corporation for each share of AT&T they own (subject to adjustment based on the number of AT&T shares at closing). Comcast shareholders will receive one share of AT&T Comcast Corporation for each Comcast share they own. AT&T shareowners will own a 56 percent economic stake and about a 66 percent voting interest in the new company. The Roberts family, which owns Comcast Class B shares, will control one third of the new company’s outstanding voting interest.
- AT&T Comcast Corporation’s assets will consist of both companies’ cable TV systems, as well as AT&T’s interests in cable television joint ventures and its 25.5% interest in Time Warner Entertainment, and Comcast’s interests in QVC, E! Entertainment, The Golf Channel, and other entertainment properties.
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