-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, BTK0IMxzPgxV59xncGTFPKTac+iXe9fpoAq27+r/uYstQ7JttqD12pSMhjo8Nn21 TK+55jbImd4iY3A4hYmFsA== 0000807249-94-000094.txt : 19940908 0000807249-94-000094.hdr.sgml : 19940908 ACCESSION NUMBER: 0000807249-94-000094 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19940907 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: C TEC CORP CENTRAL INDEX KEY: 0000310433 STANDARD INDUSTRIAL CLASSIFICATION: 4813 IRS NUMBER: 232093008 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-31099 FILM NUMBER: 94548237 BUSINESS ADDRESS: STREET 1: 46 PUBLIC SQ MARTZ TOWER STREET 2: P O BOX 3000 CITY: WILKES BARRE STATE: PA ZIP: 18703-3000 BUSINESS PHONE: 7178251100 MAIL ADDRESS: STREET 1: 46 PUBLIC SQUARE STREET 2: PO BOX 3000 CITY: WILKES BARRES STATE: PA ZIP: 18703-3000 FORMER COMPANY: FORMER CONFORMED NAME: COMMONWEALTH TELEPHONE ENTERPRISES INC DATE OF NAME CHANGE: 19860501 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: GABELLI FUNDS INC ET AL CENTRAL INDEX KEY: 0000807249 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 133056041 STATE OF INCORPORATION: NY FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: ONE CORPORATE CENTER CITY: RYE STATE: NY ZIP: 10580-1434 BUSINESS PHONE: 9149215128 SC 13D/A 1 AMENDMENT TO SCHEDULE 13D SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D (Amendment No. 10) Under the Securities Exchange Act of 1934 C-TEC CORP (Name of Issuer) Class B Common Stock Par Value $1.00 Per Share (Title of Class and Securities) 126504208 (CUSIP Number of Class of Securities) J. Hamilton Crawford, Jr., Gabelli Funds, Inc. One Corporate Center, Rye, New York 10580-1434, (914) 921-5067 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) September 2, 1994 (Date of Event Which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this State- ment because of Rule 13D-1(b)(3) or (4), check the following box: ____ /___/ Check the following box if a fee is being paid with this State- ment: _____ / / ________________________________________________________________ CUSIP No. 126504208 13D _________________________________________________________________ (1) NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS GAMCO Investors, Inc. I.D. No. 13-2951242 _________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: ____ (a) /___/ ____ (b) /___/ _________________________________________________________________ (3) SEC USE ONLY _________________________________________________________________ (4) SOURCE OF FUNDS* OO: Funds of investment advisory clients _________________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) _____ / x / _________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _________________________________________________________________ : (7) SOLE VOTING POWER : 928,318 (Item 5) :________________________ : (8) SHARED VOTING POWER NUMBER OF SHARES BENEFICIALLY : None OWNED BY EACH REPORTING :________________________ PERSON WITH : (9) SOLE DISPOSITIVE : POWER : 1,012,318 (Item 5) :________________________ :(10) SHARED DISPOSITIVE : POWER : None _________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,012,318 (Item 5) _________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* ____ /___/ _________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 11.84% _________________________________________________________________ (14) TYPE OF REPORTING PERSON* IA _________________________________________________________________ *SEE INSTRUCTIONS BEFORE FILLING OUT! _______________________________________ CUSIP No. 126504208 13D _________________________________________________________________ (1) NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS Gabelli & Company, Inc. I.D. No. 13-2885006 _________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: ____ (a) /___/ ____ (b) /___/ _________________________________________________________________ (3) SEC USE ONLY _________________________________________________________________ (4) SOURCE OF FUNDS* OO: Funds of client discretionary accounts and working capital of its own account _________________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ____ /___/ _________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _________________________________________________________________ : (7) SOLE VOTING POWER : 140 (Item 5) :________________________ : (8) SHARED VOTING POWER NUMBER OF SHARES BENEFICIALLY : 500 (Item 5) OWNED BY EACH REPORTING :________________________ PERSON WITH : (9) SOLE DISPOSITIVE : POWER : 140 (Item 5) :________________________ :(10) SHARED DISPOSITIVE : POWER : 500 (Item 5) _________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 640 (Item 5) _________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* ____ /___/ _________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 0.01% _________________________________________________________________ (14) TYPE OF REPORTING PERSON* BD _________________________________________________________________ *SEE INSTRUCTIONS BEFORE FILLING OUT! ______________________________________ CUSIP No. 126504208 13D _________________________________________________________________ (1) NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS Gabelli Funds, Inc. I.D. No. 13-3056041 _________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: ____ (a) /___/ ____ (b) /___/ _________________________________________________________________ (3) SEC USE ONLY _________________________________________________________________ (4) SOURCE OF FUNDS* WC _________________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) _____ / x / _________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _________________________________________________________________ : (7) SOLE VOTING POWER : 218,500 (Item 5) :________________________ : (8) SHARED VOTING POWER NUMBER OF SHARES BENEFICIALLY : None (Item 5) OWNED BY EACH REPORTING :________________________ PERSON WITH : (9) SOLE DISPOSITIVE : POWER : 218,500 (Item 5) :________________________ :(10) SHARED DISPOSITIVE : POWER : None (Item 5) _________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 218,500 (Item 5) _________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* _____ / x / _________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 2.56% _________________________________________________________________ (14) TYPE OF REPORTING PERSON* HC _________________________________________________________________ *SEE INSTRUCTIONS BEFORE FILLING OUT! ______________________________________ CUSIP No. 126504208 13D _________________________________________________________________ (1) NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS Gabelli International Limited I.D. No. Foreign Corporation _________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: ____ (a) /___/ ____ (b) /___/ _________________________________________________________________ (3) SEC USE ONLY _________________________________________________________________ (4) SOURCE OF FUNDS* WC _________________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ____ /___/ _________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION British Virgin Islands _________________________________________________________________ : (7) SOLE VOTING POWER : 5,000 (Item 5) :________________________ : (8) SHARED VOTING POWER NUMBER OF SHARES BENEFICIALLY : None OWNED BY EACH REPORTING :________________________ PERSON WITH : (9) SOLE DISPOSITIVE : POWER : 5,000 (Item 5) :________________________ :(10) SHARED DISPOSITIVE : POWER : None _________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,000 (Item 5) _________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* ____ /___/ _________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 0.06% _________________________________________________________________ (14) TYPE OF REPORTING PERSON* CO _________________________________________________________________ *SEE INSTRUCTIONS BEFORE FILLING OUT! ____________________________________ CUSIP No. 126504208 13D _________________________________________________________________ (1) NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS Mario J. Gabelli I.D. No. ###-##-#### _________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: ____ (a) /___/ ____ (b) /___/ _________________________________________________________________ (3) SEC USE ONLY _________________________________________________________________ (4) SOURCE OF FUNDS* WC _________________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ____ / x / _________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION USA _________________________________________________________________ : (7) SOLE VOTING POWER : None (Item 5) :________________________ : (8) SHARED VOTING POWER NUMBER OF SHARES BENEFICIALLY : None OWNED BY EACH REPORTING :________________________ PERSON WITH : (9) SOLE DISPOSITIVE : POWER : None (Item 5) :________________________ :(10) SHARED DISPOSITIVE : POWER : None _________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON None (Item 5) _________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* _____ / x / _________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 0.00% _________________________________________________________________ (14) TYPE OF REPORTING PERSON* IN _________________________________________________________________ *SEE INSTRUCTIONS BEFORE FILLING OUT! ____________________________________ CUSIP No. 126504208 13D _________________________________________________________________ (1) NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS Gabelli International Limited II I.D. No. Foreign Corporation _________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: ____ (a) /___/ ____ (b) /___/ _________________________________________________________________ (3) SEC USE ONLY _________________________________________________________________ (4) SOURCE OF FUNDS* WC _________________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ____ /___/ _________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION British Virgin Islands _________________________________________________________________ : (7) SOLE VOTING POWER : 20,000 (Item 5) :________________________ : (8) SHARED VOTING POWER NUMBER OF SHARES BENEFICIALLY : None OWNED BY EACH REPORTING :________________________ PERSON WITH : (9) SOLE DISPOSITIVE : POWER : 20,000 (Item 5) :________________________ :(10) SHARED DISPOSITIVE : POWER : None _________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 20,000 (Item 5) _________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* ____ /___/ _________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 0.23% _________________________________________________________________ (14) TYPE OF REPORTING PERSON* CO _________________________________________________________________ *SEE INSTRUCTIONS BEFORE FILLING OUT! ___________________________________ CUSIP No. 126504208 13D _________________________________________________________________ (1) NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS Gabelli Performance Partnership I.D. No. 13-3396569 _________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: ____ (a) /___/ ____ (b) /___/ _________________________________________________________________ (3) SEC USE ONLY _________________________________________________________________ (4) SOURCE OF FUNDS* AF: Funds of Gabelli Performance Partnership _________________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ____ /___/ _________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _________________________________________________________________ : (7) SOLE VOTING POWER : 15,000 (Item 5) :________________________ : (8) SHARED VOTING POWER NUMBER OF SHARES BENEFICIALLY : None OWNED BY EACH REPORTING :________________________ PERSON WITH : (9) SOLE DISPOSITIVE : POWER : 15,000 (Item 5) :________________________ :(10) SHARED DISPOSITIVE : POWER : None _________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 15,000 (Item 5) _________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* ____ /___/ _________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 0.18% _________________________________________________________________ (14) TYPE OF REPORTING PERSON* CO _________________________________________________________________ *SEE INSTRUCTIONS BEFORE FILLING OUT! This Amendment No. 10 to Schedule 13D on C-TEC CORP (the "Issuer") is being filed on behalf of the undersigned to amend the Schedule 13D, as amended (the "Schedule 13D") which was originally filed on January 31, 1990 . Unless otherwise indicat- ed, all capitalized terms used herein but not defined herein shall have the same meaning as set forth in the Schedule 13D. Item 3. Source and Amount of Funds or Other Consideration Item to Schedule 13D is amended, in pertinent part, as follows: All Reporting Persons used an aggregate of approximate- ly $24,500 to purchase its Securities. GFI used approximately $24,500 of funds that were provided through the accounts of certain of their investment advisory clients. Item 4. Purpose of Transaction Reference is made to the information provided in the revision to Item 6 incorporated in this Amendment. Item 5. Interest In Securities Of The Issuer (a) The aggregate number and percentage of Securities to which this Schedule 13D relates is 1,271,458 shares, representing 14.88% of the 8,547,327 shares outstanding in the Issuer's most recently filed 10-Q Form dated July, 1994. The Reporting Persons beneficially own those Securities as follows: Shares of % of Class B Common Class of Name Stock Common GFI: As Principal 1,500 0.02% As Agent 217,000 2.54% GAMCO 1,012,318 11.84% Gabelli & Company: Principal/Trading 140 0.00% Agent 500 0.01% GPP 15,000 0.18% GIL 5,000 0.06% GIL II 20,000 0.23% MJG 0 0.00% Mr. Gabelli is deemed to have beneficial ownership of the Securities beneficially owned by each of the foregoing persons and GFI is deemed to have beneficial ownership of the securities owned beneficially by each of the foregoing persons other than Mr. Gabelli. (b) Each of the Reporting Persons and Covered Persons has the sole power to vote or direct the vote and sole power to dispose or to direct the disposition of the Securities reported for it, either for its own benefit or for the benefit of its investment clients or its partners, as the case may be, except that GAMCO Investors, Inc. does not have authority to vote 84,000 of the reported shares, and except that GFI has sole dispositive and voting power with respect to the shares of the Issuer held by the The Gabelli Asset Fund, The Gabelli Growth Fund, The Gabelli Equity Trust, Inc. The Gabelli Convertible Securities Fund, The Gabelli Value Fund Inc., The Gabelli Small Cap Growth Fund, The Gabelli Equity Income Fund, The Gabelli ABC Fund, The Gabelli Global Convertible Securities Fund, The Gabelli Interactive Couch Potato Fund, Gabelli Gold Fund, Inc., and/or The Gabelli Global Telecommunications Fund so long as the aggregate voting interest of all joint filers does not exceed 25% of their total voting interest in the Issuer and, in that event, the Proxy Voting Committee of each Fund (other than The Gabelli Growth Fund) shall respectively vote that Funds shares, and except that at any time, the Proxy Voting Committee of each such Fund may take and exercise in its sole discretion the entire voting power with respect to the shares held by such fund under special circumstances such as regulatory considerations, and except that Gabelli & Company shares with the clients for whose accounts such Securities were purchased the voting and dispositive power with respect to the 500 shares purchased for such accounts, and except that the power of Mr. Gabelli and GFI is indirect with respect to Securities beneficially owned directly by other Reporting Persons. Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer Item 6 to Schedule 13D is amended, in pertinent part, as follows: Gabelli & Company, Inc., in its capacity as a broker- dealer which regularly supplies research to the institutional community, has issued a special research report criticizing as unfair to minority shareholders the Issuer's recently proposed rights offering involving its Common and Class B Common Stock and has communicated its concerns and recommended an alternative course of action to senior management and the Board of Directors of the Issuer. Gabelli & Company, Inc. has also announced that it will host a meeting for its institutional clients on September 12, 1994 to discuss its concerns over the timing and structure of the proposed rights offering, the fundamentals of the Issuer and the Issuer's prospects in the emerging integrated communications market. A copy of the above-mentioned research report is attached to this Amendment and marked as Exhibit JJ. Item 7 Material to be filed as an Exhibit Item 7 to Schedule 13D is amended, in pertinent part, as follows: The attached Exhibit consisting of a special research report dated August 31, 1994 issued by Gabelli & Company, Inc. expressing concerns over a proposed rights offering by the Issuer is attached hereto and hereinafter shall be incorporated by reference as Exhibit JJ to Schedule 13D of various Reporting Persons: Exhibit JJ: Research Report of Gabelli & Company, Inc. dated August 31, 1994 relating to the Issuer's Proposed Rights Offering Signature After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: September 7, 1994 GABELLI FUNDS, INC. By:_________________________ J. Hamilton Crawford, Jr. Senior Vice President and General Counsel GAMCO INVESTORS, INC. By:_______________________ Douglas R. Jamieson Chief Operating officer and Executive Vice President GABELLI & COMPANY, INC. By:_________________________ J. Hamilton Crawford ,Jr. Senior Vice President and General Counsel GABELLI INTERNATIONAL LIMITED By____________________________ Mario J. Gabelli, Chairman and Chief Investment Officer by: J. Hamilton Crawford, Attorney-in-Fact GABELLI PERFORMANCE PARTNERSHIP By____________________________ Mario J. Gabelli, General Partner by: J. Hamilton Crawford, Attorney-in-Fact MARIO J. GABELLI By:__________________________ J. Hamilton Crawford, Jr. Attorney-in-Fact Schedule I Information with Respect to Executive Officers and Directors of the Undersigned Schedule I to Schedule 13D is amended, in pertinent part, as follows: The following sets forth as to each of the executive officers and directors of the undersigned: his name; his business address; and his present principal occupation or employment and the name, principal business and address of any corporation or other organization in which such employment is conducted. Unless otherwise specified, the principal employer of each such in- dividual is Gabelli Funds, Inc., Gabelli & Company, Inc., or GAMCO Investors, Inc., the business address of each of which is One Corporate Center, Rye, New York 10580, and each such individual identified below is a citizen of the United States. To the knowledge of the undersigned, during the last five years, no such person has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors), and no such person was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which he was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities law or finding any violation with respect to such laws except as reported in Item 2(d) of this Schedule 13D. Gabelli Funds, Inc. Directors: Mario J. Gabelli Richard B. Black Chairman of Raster Image Processing Systems; Chairman ECRM; Director of Archetype and Oak Technology; Director of The Morgan Group, Inc.; General Partner of KBA Part- ners, Parker Plaza 400 Kelby Street, Fort Lee, NJ 07029 Charles C. Baum Chairman, Director and Chief Executive Officer of The Morgan Group, Inc.; Secretary & Treasurer United Holdings 2545 Wilkens Avenue Baltimore, MD 21223 Dr. Eamon M. Kelly President Tulane University 218 Gibson Hall 6823 St. Charles Avenue New Orleans, LA 70118 Officers: Mario J. Gabelli Chairman, Chief Executive Officer and Chief Investment Officer J. Hamilton Crawford, Jr. Vice President, Assistant Secretary and General Counsel Stephen G. Bondi Vice President - Finance Joseph J. Frazzitta Assistant Secretary GAMCO Investors, Inc. Directors: Douglas R. Jamieson Joseph R. Rindler, Jr. Regina Pitaro Joseph J. Frazzitta William F. Scholz Officers: Mario J. Gabelli Chief Investment Officer Douglas R. Jamieson Chief Operating Officer and Executive Vice President Joseph J. Frazzitta Vice President and Chief Financial Officer James E. McKee Vice President, Legal and Compliance and Assistant Secretary J. Hamilton Crawford, Jr. Assistant Secretary Gabelli Securities, Inc. Directors: Charles C. Baum See above-Gabelli Funds, Inc. Joseph R. Rindler Managing Director Gabelli & Company, Inc. One Corporate Center Rye, NY 10580 David Perlmutter Perlmutter & Associates 200 Park Avenue, Suite 4515 New York, N.Y. 10166 Stephen G. Bondi Acting Chief Operating Officer and Vice President Advisors: Vincent J. Amabile Robert Blake Officers: Stephen G. Bondi Acting Chief Operating Officer and Vice President J. Hamilton Crawford, Jr. Vice President and Assistant Secretary Erwin I. Mevorah Vice President - Finance Gabelli & Company, Inc. Directors: James G. Webster, III Chairman Charles C. Baum See above-Gabelli Funds, Inc. Joseph J. Frazzitta Vice President and Chief Financial Officer Officers: James G. Webster, III Chairman Joseph J. Frazzitta Vice President/Finance and Chief Financial Officer Stephen G. Bondi Vice President J. Hamilton Crawford, Jr. Vice President and General Counsel GLI, Inc. Directors: Mario J. Gabelli See above-Gabelli Funds, Inc. Officers: Mario J. Gabelli Chairman and Chief Investment Officer Stephen G. Bondi Vice President J. Hamilton Crawford, Jr. Assistant Secretary Gabelli Associates Limited Directors: Mario J. Gabelli See above-Gabelli Funds, Inc. MeesPierson (Cayman) British American Centre Limited Dr. Roy's Drive- Phase 3 Georgetown, Grand Cayman Cayman Islands, British WestIndies MeesPierson (Cayman) British American Centre Limited Dr. Roy's Drive- Phase 3 Georgetown, Grand Cayman Cayman Islands, British WestIndies Officers: Mario J. Gabelli Chief Investment Officer Kevin Bromley Vice President, Treasurer and Assistant Secretary Sandra Wight Secretary and Assistant Treasurer Gabelli International Limited Directors: Mario J. Gabelli See above-Gabelli Funds, Inc. MeesPierson (Cayman) British American Centre Limited Dr. Roy's Drive- Phase 3 Georgetown, Grand Cayman Cayman Islands, British West Indies Officers: Kevin Bromley Vice President, Treasurer, and Assistant Secretary MeesPierson (Cayman) Limited British American Centre Dr. Roy's Drive- Phase 3 Georgetown, Grand Cayman Cayman Islands, British West Indies Sandra Wight Secretary and Assistant Treasurer Assistant Secretary MeesPierson (Cayman) Limited British American Centre Dr. Roy's Drive- Phase 3 Georgetown, Grand Cayman Cayman Islands, British West Indies Lynch Corporation 8 Sound Shore Drive Greenwich, CT 06830 Directors: Paul J. Evanson Chief Financial Officer FPL Group, Inc. P.O Box 14000 700 Universe Blvd. Juno Beach, Fl 33408 Bradley J. Bell Vice President & Treasurer Whirlpool Corp. Administrative Center Benton Harbor, MI 49022 Morris Berkowitz Business Consultant 163-43 Willets Point Blvd. Whitestone, NY 11357 Richard J. Boyle Chairman, The Boyle Group 6110 Blue Circle Drive Suite 250 Minnetonka, MN 55343 Mario J. Gabelli See above-Gabelli Funds, Inc. Robert C. Kolodny, M.D. Medical Director and Chairman of the Board of The Behavorial Medicine Institute 885 Oenoke Ridge Road New Canaan, CT 06840 Paul Woolard Business Consultant 116 East 68th Street New York, NY 10021 E. Val Cerutti Business Consultant Cerutti Consultants 227 McLain Street Mount Kisco, NY 10549 Officers: Mario J. Gabelli Chairman and Chief Executive Officer Philip J. Lombardo Office of the President Michael J. Small Office of the President Joseph H. Epel Treasurer Robert E. Dolan Chief Financial Officer Carmine Ceraolo Assistant Controller Robert A. Hurwich Vice President-Administration, Secretary and General Counsel Mary J. Carroll Administrative Assistant Safety Railway Service Corporation 251 Welton Street Hamden, CT 06517 Directors: Joseph P. Rhein Chairman 241 McClenaghan Mill Road Wynnewood, PA 19096 William F. Bullis Safety Railway Service Corporation 265 Great Neck Road Great Neck, NY 11021 Officers: Robert E. Dolan Controller Joseph H. Epel Treasurer and Assistant Secretary James W. Toman Assistant Secretary Entoleter, Inc. 251 Welton Street Hamden, CT 06517 Directors: Joseph P. Rhein See above-Safety Railway William F. Bullis See above-Safety Railway Officers: John M. Martin President James W. Toman Chief Financial Officer Joseph H. Epel Treasurer and Secretary Robert E. Dolan Controller Western New Mexico Telephone Company 314 Yankee Street Silver City, NM 08062 Directors: Jack C. Keen Chairman Jack W. Keen President Dr. Brian E. Gordon Vice President Mary Beth Baxter Secretary & Treasurer Robert E. Dolan See above-Lynch Corporation Joseph H. Epel See above-Lynch Corporation Carmine Ceraolo See above-Lynch Corporation Mary J. Carroll See above-Lynch Corporation Officers: Jack C. Keen Chairman of the Board Jack W. Keen President Jack L. Bentley Executive Vice President Dr. Brian E. Gordon Vice President Charles M. Baxter Sr. Vice President-Operations James M. Bucher Asst. Vice President- Operations Mary Beth Baxter Secretary & Treasurer Joseph H. Epel Assistant Treasurer Inter-Community Telephone Company P.O. Box A Nome, ND 58062 Directors: Mary J. Carroll See above-Lynch Corporation Carmine P. Ceraolo See above-Lynch Corporation Robert E. Dolan See above-Lynch Corporation Joseph H. Epel See above-Lynch Corporation Leone A. Nilsen President Roger J. Nilsen P.O. Box 146 Hannaford, ND 58448 Duane A. Plecity Secretary Harry B. Snyder P.O. Box 131 Buffalo, ND 58011 Robert Snyder 200 Broadway South Buffalo, ND 58011 Officers: Leone A. Nilsen President Robert Snyder Vice President Duane A. Plecity Secretary Harry B. Snyder Treasurer Joseph H. Epel Assistant Treasurer EX-1 2 One Corporate Center 08/31/94 Rye, New York 10580 (914) 921-5130 C-TEC Corporation (CTEXB - 24 - OTC) Right(s) + Wrong(s) or better Kill The Idea! One Corporate Center 08/31/94 Rye, New York 10580 (914) 921-5130 - Pilot Error C-TEC Corporation (CTEXB - 24 - OTC) or Overreaching Background On June 18, 1993, C-TEC's controlling shareholders decided to sell all of their shares to Peter Kiewit Sons', Inc. (PKS) for a price of $34.50 per share in cash. The sellers left the minority shareholder in the cold. At that time we shared with our clients, "We are uncertain as to the motivations behind the Control Group decision to sell or why they are settling for a taxable transaction, or for a price equal to just 60 - 70% of our estimate of Private Market Value. In our analysis, $34.50 per share is equivalent to paying just 3.7 times cash flow for telephone, or looked at another way, $600 per cable television subscriber." A Revived Respect For Minority Shareholders? In CTEC's 1993 Annual Report, David McCourt, the spirited and entrepreneurial Chief Executive Officer wrote, "This is an exciting time for C-TEC and its shareholders. Management is committed to expanding C-TEC's presence in the emerging integrated communications market. With the support and assistance of the resource and experience base of Kiewit, C-TEC is in a better position to grow than ever before in its history. I hope that shareholders have high expectations of C-TEC because I certainly do. And my expectations are not limited to our financial or operating performance. C-TEC management will be more open and available to our shareholders than ever before. We will attempt to keep all stakeholders in C-TEC -- shareholders, employees, customers, and the communities in which we operate -- as informed as possible about the important decisions made by our company going forward." What Is Currently Proposed? / What Do We Think? On July 1, 1994 the company filed a Form S-3 registration statement through a rights offering to raise $330 million. While we would normally applaud this action, in this instance, we must condemn it. In sum, our judgement is based on: - Blind Pool - 100% Rights Offer - No Communication to Shareholders - Management/Kiewit allocation priority = No "Vote" By Us First, the offering, as structured, proposes to double the shares of C-TEC that are outstanding, taking the number to 33 million shares from the current 16.5 millions shares. We understand this will be accomplished via issuance of 16.5 million tradeable rights, whereby one right plus $20.00 equals one new share of C-TEC. So far the impact of this strategy has been to drive the public price of C-TEC common stock from $35 per share to $24 per share at a time when most publicly traded media related companies have surged in price. Secondly, management has not yet initiated action to share their strategic vision for the company with public shareowners as promised in the Chairman's letter of the 1993 Annual Report. In effect, shareowners are being asked to "double down" blind, while the Kiewit group, fully informed, can increase its ownership disproportionately via an oversubscription mechanism based on "the number of shares each beneficial holder exercising the oversubscription privilege has purchased pursuant to the basic subscription privilege." By allowing Kiewit/McCourt to enjoy oversubscription privileges and by setting the subscription price at these levels, particularly with such a massive underwriting in relationship to the lack of shareholder communications of the company, we have to ask the question, "Has Kiewit set up a transaction that disproportionately benefits themselves?" In light of the alternatives available, for example, a convertible bond, or variation thereof that any investment banker would have jumped at, or a joint venture with another telecom or cable company that even an investment banker uninformed in this industry could find, we find it incredulous that the rights offering option was pursued. In sum we think management should first communicate its strategic approach and then do a scaled down rights offering or some alternative form of financing such as convertible debt. Values - A Revisit To The Long Term Table 1 is our previously published PMV model for C-TEC which we are updating. Table 1 In Tables 2 and 3 we walk you through our Private Market Value model and the company's capitalization, pro-forma for the proposed rights offering. Note that PMV after the rights offering is roughly $40.00 per share versus $60.00 today. Table 2 C-TEC Corporation ($mil.) - Private Market Value - 6/30/94 + Adj. Pro-forma POTS $ 650 (a) $ 650 Cable Television 490 (b) 490 Other 20 20 Total $1,160 $1,160 - (Debt)/cash, net (190) +320 130 Private Market Value $ 970 $1,290 Shares outstanding 16.5 +16.5 33.0 PMV/share $58.80 $39.10 Notes: (a) EBDIT $72 mil., 9x (b) EBDIT $45 mil., 11x Source: Gabelli & Company, Inc. estimates and company published data. Table 3 C-TEC Corporation ($ mil.) - Capitalization - + Rights Offer # Shares - Common Stock 7.962 + 7.962 = 15.924 Class B 8.547 + 8.547 17.094 Total 16.509 16.509 33.018 x Price (a) 29 1/8 (b) 24 Market Value $480.8 $792.4 + Debt 402.8 402.8 - - Cash (195.0) (c) + (320) (d) (515.0) - - Other Cash equivalent (12.7) (12.7) - - Pension overfund @ 25% (4.6) (4.6) Debt, net (Cash) $190.5 $ (130) Total Cap. $671.3 $662.0 Total Cap./EBDIT (e) 5.7x 5.7x Notes: (a) Price of Class B stock (b) As of 6/30/94, day prior to filing of rights offer (c) includes $182.5 - 40.0 taxes = 142.5 net proceeds estimated from sale of cellular (d) 15% discount to market prices of common stock + class B (e) EBDIT: POTS $ 72 mil. CATV 45 $117 mil. Source: Gabelli & Company, Inc. computations. In Sum While we continue to be attracted to C-TEC's basic position in telephony and cable and are encouraged with the Kiewit group's enthusiasm to move forward and promise of "openness", we see the structure and timing of the proposed rights offering as unfair to other than control group shareholders, especially when alternatives are more efficient, and more shareholder sensitive. These would materially enhance both the public as well as the private value of the company relative to this alternative. So why did Kiewit do this! Was it Pilot Error or Overreaching? We think this deal should be dropped. Salvatore Muoio, C.F.A. / mra Gabelli & Company, Inc. 1994 (914) 921-5131 References: Company Reports: 6/30/93, 4/02/93 Gabelli Funds, Inc. and its affiliates own on behalf of themselves or their clients 30.7% of C-TEC Corporation common stock and 14.86% of Class B common stock. This report has been prepared as a matter of general information. It is not intended to be a complete description of any security or company mentioned and is not an offer to buy or sell any security. Unless otherwise noted, stock prices for 1994 reflect the closin price through the business day immediately prior to the date of this report. All facts and statistics are from sources believed rel but are not guaranteed as to accuracy. The firm and its affiliates, employees, and clients may have recently established or dispose or may be establishing or disposing of positions in securities mentioned in this report. Since portfolio managers make individual investment decisions in the accounts under their supervision, transactions in such accounts may be inconsistent with research report Additional information on these securities is available upon request. C-TEC Corporation Source: 1993 Annual Report C-TEC Corporation Source: C-TEC 10Q 6/30/94.. -----END PRIVACY-ENHANCED MESSAGE-----