Path: utzoo!utgpu!news-server.csri.toronto.edu!mailrus!accuvax.nwu.edu!nucsrl!telecom-request From: Robert Virzi Newsgroups: comp.dcom.telecom Subject: GTE/Contel Merger Questions Message-ID: <9646@accuvax.nwu.edu> Date: 12 Jul 90 18:43:49 GMT Sender: news@accuvax.nwu.edu Organization: GTE Laboratories, Inc., Waltham, MA Lines: 36 Approved: Telecom@eecs.nwu.edu X-Submissions-To: telecom@eecs.nwu.edu X-Administrivia-To: telecom-request@eecs.nwu.edu X-Telecom-Digest: Volume 10, Issue 477, Message 2 of 10 ** NEWS** GTE Corp. and Contel Corp. today jointly announced they they have agreed in principle to merge the two telecom giants. The value of the transaction is $6.2 Billion. Combined local exchange operations will serve 17.7 Million access lines, making it the countries largest LEC. Combined cellular operations will serve apprx. 50 Million POPs, making it the second largest cellular provider. Both companies seem to be strongly interested in CATV, with Contel already owning several franchises. ** QUESTIONS ** Where are Contel franchises? (Both telephone and CATV) Why did GTE stock drop (albeit a small amount) while Contel and Contel Cellular stocks went up? I suspected something was up when I noticed that GTE had been on the NYSE most active list several times in the past week. I guess someone made a killing. Anyone care to guess on future stock prices? What is Contel's reputation? I have heard that they are one of the more innovative telcos, pushing into CATV, videotex, and other interesting services at a fast pace. What sort of network does Contel have? I know they don't use the GTD-5 because (rumor has it) we (GTE) have only sold one outside the corporation to Ameritech. Are they largely digital or X-bar or worse? Finally, are there likely to be objections raised to the merger by the FCC or SEC? If so, on what grounds?