-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PpOTuTzJBfk8MJTe+fXEfOgZ2VaBr8uqXzXK1w2JJeIWUxE7Ozw7eKk6JmGlSfzX cy9fTz+fF/bH+CkrCVsY/w== 0000005907-97-000032.txt : 19970818 0000005907-97-000032.hdr.sgml : 19970818 ACCESSION NUMBER: 0000005907-97-000032 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970812 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970815 SROS: BSE SROS: CSX SROS: NYSE SROS: PHLX SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AT&T CORP CENTRAL INDEX KEY: 0000005907 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 134924710 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01105 FILM NUMBER: 97664945 BUSINESS ADDRESS: STREET 1: 32 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10013 BUSINESS PHONE: 2123875400 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN TELEPHONE & TELEGRAPH CO DATE OF NAME CHANGE: 19920703 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: August 12, 1997 AT&T CORP. A New York Commission File I.R.S. Employer Corporation No. 1-1105 No. 13-4924710 32 Avenue of the Americas, New York, New York 10013-2412 Telephone Number (212) 387-5400 Form 8-K AT&T Corp. August 12, 1997 Item 2. Acquisition or Disposition of Assets. AT&T currently owns 13,494,750 shares of common stock, par value $.01 per share (the "LIN TV Common Stock"), of LIN Television Corporation, a Delaware corporation ("LIN TV"), representing approximately 45.4% of the issued and outstanding LIN TV Common Stock outstanding. The LIN TV Common Stock owned by AT&T is held of record in the name of MMM Holdings, Inc., a Delaware corporation ("MMM"), which is a wholly owned subsidiary of AT&T Wireless Services, Inc., a Delaware corporation ("AT&T Wireless"), which is a wholly owned subsidiary of AT&T. On August 12, 1997, LIN TV, Ranger Holdings Corp., a Delaware corporation ("Parent") and Ranger Acquisition Company, a Delaware corporation and a direct wholly owned subsidiary of Parent ("Sub"), entered into a definitive Agreement and Plan of Merger (the "Merger Agreement"). The Merger Agreement provides for the acquisition by Parent of all of the outstanding shares of LIN TV Common Stock at $47.50 per share in cash (plus accretion) by means of a merger (the "Merger") of Sub with and into LIN TV. The Merger is subject to various conditions, including the approval by the Federal Communications Commission of the transfer of LIN TV's broadcasting licenses, the approval of the Merger by the holders of a majority of the outstanding shares of LIN TV Common Stock (excluding shares held by AT&T), funding of the transaction under debt and equity commitments that have been secured, and the expiration of the applicable Hart-Scott-Rodino waiting period. In connection therewith, AT&T, AT&T Wireless and MMM entered into a stockholders agreement with Parent, Sub and Issuer whereby MMM agreed, and AT&T and AT&T Wireless agreed to cause MMM, to vote its shares of LIN TV Common Stock in favor of the proposed Merger in the event that the majority of holders of the publicly held shares vote in favor of the Merger. In addition, in connection with the spin-off of LIN TV from LIN Broadcasting Corporation in December 1994, LIN TV and AT&T Wireless entered into a private market value guarantee (the "Television Guarantee"), which, among other things, provides for an appraisal and sale of LIN TV in 1998. Under the Television Guarantee, appraisers would have determined the private market value of LIN TV and AT&T would have had the option to purchase, at the appraised price, the outstanding shares of LIN TV Common Stock it did not own. If AT&T were to decline to exercise its option, then LIN TV would be put up for sale under the direction of the independent directors. Under the terms of an amendment to the Television Guarantee, AT&T has relinquished its purchase option, the requirement to appoint independent appraisers has been eliminated, and the commencement date of any sale process has been deferred and will occur only if the Merger does not occur. The gross proceeds to AT&T from the sale of its interest in LIN TV, should all conditions to the Merger be satisfied and the Merger become effective, total approximately $641 million. In addition, in a separate transaction AT&T agreed to sell its television station in Grand Rapids, Michigan (WOOD-TV) to Parent for approximately $123 million, subject to certain adjustments, when the Merger occurs. If the Merger does not occur, Wood-TV will be purchased by LIN TV on substantially the same terms. Item 7. Exhibits. 99.1 Stockholders Agreement, dated August 12, 1997, by and among Ranger Holdings Corp., Ranger Acquisition Company, AT&T Corp., AT&T Wireless Services, Inc., MMM Holdings, Inc. and LIN Television Corporation. 99.2 Press release issued by AT&T on August 12, 1997. Form 8-K AT&T Corp. August 12, 1997 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AT&T CORP. By: /s/ Marilyn J. Wasser ------------------------------------ Name: Marilyn J. Wasser Title: Vice President and Secretary August 12, 1997 Exhibit Index 99.1 Stockholders Agreement, dated August 12, 1997, by and among Range Holdings Corp., Ranger Acquisition Company, AT&T Corp., AT&T Wireless Services, Inc., MMM Holdings, Inc. and LIN Television Corporation. 99.2 Press release issued by AT&T on August 12, 1997. EX-99 2 EXH. 99.1 STOCKHOLDERS AGREEMENT STOCKHOLDERS AGREEMENT THIS STOCKHOLDERS AGREEMENT, dated as of August , 1997 (this "Agreement"), is made and entered into by Ranger Holdings Corp., a Delaware corporation ("Parent"), Ranger Acquisition Corp., a Delaware corporation and a direct wholly owned subsidiary of Parent ("Sub"), and AT&T Corp., a New York corporation, and AT&T Wireless Services, Inc., a Delaware corporation and a direct wholly owned subsidiary of AT&T Corp. (collectively, the "Other AT&T Parties"), and MMM Holdings, Inc., a Delaware corporation and a direct wholly owned subsidiary of AT&T Wireless Services, Inc. ("Holding" and, together with the Other AT&T Parties, the AT&T Parties"). In addition to the above parties, LIN Television Corporation, a Delaware corporation (the "Company"), hereby joins in the execution and delivery of this Agreement for purposes of Sections 2(b) and 7. W I T N E S S E T H WHEREAS, concurrently herewith, Parent, Sub and the Company are entering into an Agreement and Plan of Merger (as such agreement may hereafter be amended from time to time, the "Merger Agreement"; capitalized terms used and not defined herein have the respective meanings ascribed to them in the Merger Agreement), pursuant to which Sub will be merged with and into the Company (the "Merger"); WHEREAS, Holding is the record and Beneficial Owner of 13,494,750 Shares; and WHEREAS, as an inducement and a condition to entering into the Merger Agreement, Parent has required that the AT&T Parties agree, and the AT&T Parties have agreed, to enter into this Agreement; NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows: 1. Definitions. For purposes of this Agreement: (a) "Beneficially Own" or "Beneficial Ownership" with respect to any securities shall mean having "beneficial ownership" of such securities (as determined pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), including pursuant to any agreement, arrangement or understanding, whether or not in writing. (b) "Company Common Stock" shall mean at any time the Common Stock, par value $.01 per ---------------------- share, of the Company. (c) "Person" shall mean an individual, corporation, partnership, joint venture, association, trust, unincorporated organization or other entity. 2. Provisions Concerning Company Common Stock. (a) Each AT&T Party hereby jointly and severally agrees that during the period commencing on the date hereof and continuing until the first to occur of the Effective Time or termination of the Merger Agreement in accordance with its terms, at any meeting of the holders of Company Common Stock, however called, or in connection with any written consent of the holders of Company Common Stock, Holding shall, in its capacity as a holder of Company Common Stock and subject to Section 8, vote (and the Other AT&T Parties shall cause to be voted) all of the issued and outstanding Shares held of record or Beneficially Owned by Holding, whether heretofore owned and held as of the date hereof or hereafter acquired, other than in connection with the termination of the Merger Agreement in accordance with its terms (i) in favor of the Merger, the execution and delivery by the Company of the Merger Agreement and the approval of the terms thereof and each of the other actions contemplated by the Merger Agreement and this Agreement and any actions required in furtherance thereof and hereof if, but only if, a majority of the issued and outstanding Company Common Stock not owned by Holding that is represented in person or by proxy at any meeting of the holders of the Company Common Stock at which the holders of a majority of the shares of Company Common Stock not owned by Holding are present shall have voted to approve the Merger, it being understood that in the event of any other vote at such meeting Holding may abstain with respect to the approval and adoption of the Merger and the Merger Agreement; (ii) against any action or agreement that would result in a breach in any respect of any covenant, representation or warranty or any other obligation or agreement of the Company under the Merger Agreement or this Agreement; and (iii) except as otherwise agreed to in writing in advance by Parent, against the following actions (other than the Merger and the transactions contemplated by the Merger Agreement): (A) any extraordinary corporate transaction, such as a merger, consolidation or other business combination involving the Company or its Subsidiaries; (B) a sale, lease or transfer of a material amount of assets of the Company or its Subsidiaries, or a reorganization, recapitalization, dissolution or liquidation of the Company or its Subsidiaries; (C)(1) any change in a majority of the persons who constitute the board of directors of the Company, provided that Holding and the Other AT&T Parties may, at any time, change its designees to the board of directors of the Company; (2) any change in the present capitalization of the Company or any amendment of the Company's Certificate of Incorporation or Bylaws; (3) any other material change in the Company's corporate structure or business; or (4) any other action involving the Company or its Subsidiaries which is intended, or could reasonably be expected, to materially delay or materially adversely affect the Merger and the transactions contemplated by this Agreement and the Merger Agreement, and during such period no AT&T Party shall enter into any agreement or understanding with any person or entity the effect of which would be inconsistent with or violative of the provisions and agreements contained in this Section 2. (b) Section 2(a) is for the benefit of, and may not be amended or waived without the prior written consent of, the Company. 3. Irrevocable Commitment. Each AT&T Party hereby irrevocable commits and agrees that for a period of at least two years from the Closing Date (a) neither it nor its affiliates will acquire, in the aggregate, beneficial ownership of 25% or more of the Company Common Stock on a fully diluted basis and (b) it shall not cause or permit the designees of any AT&T Party or its affiliates to constitute a majority of the Board of Directors of the Company. 4. Information Supplied by the AT&T Parties. The AT&T Parties will, jointly and severally, indemnify and hold harmless Parent and Sub and their respective officers, directors, controlling persons and agents against any and all claims, losses, liabilities, damages, costs or expenses (including reasonable attorneys' fees and expenses) that may arise out of or with respect to the information specifically supplied by any AT&T Party for inclusion in the Proxy Statement containing or being alleged to contain an untrue statement of material fact or omitting or being alleged to omit to state any material fact required to be stated therein or necessary in order to make the statements the light of the circumstances under which they were made, not misleading. 5. Covenants, Representations and Warranties of Each AT&T Party. (a) Each AT&T Party hereby jointly and severally represents and warrants to Parent as follows: (i) Ownership of Shares. Holding is the record and Beneficial Owner of 13,494,750 Shares and the Other AT&T Parties are each the Beneficial Owner but not the record holder of 13,494,750 Shares. On the date hereof, such 13,494,750 Shares constitute all of the Shares owned of record or Beneficially Owned by the AT&T Parties. The AT&T Parties have sole voting power and sole power to issue instructions with respect to the matters set forth in Sections 2 and 3 hereof, sole power of disposition, sole power of conversion, sole power to demand appraisal rights and sole power to agree to all of the matters set forth in this Agreement, in each case with respect to 13,494,750 Shares, with no material limitations, qualifications or restrictions on such rights, subject to applicable securities laws and the terms of this Agreement. (ii) Organization, Standing and Power. Each of the AT&T Parties is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation. Each AT&T Party has adequate corporate power and authority to own its properties and carry on its business as presently conducted. Each AT&T Party has the corporate power and authority to enter into and perform all of such AT&T Party's obligations under this Agreement and to consummate the transactions contemplated hereby. There is no beneficiary or holder of a voting trust certificate or other interest of any trust of which any AT&T Party is trustee whose consent is required for the execution and delivery of this Agreement or the consummation by such AT&T Party of the transactions contemplated hereby. (iii) Execution, Delivery and Performance. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the Board of Directors of each AT&T Party, and each AT&T Party has taken all other actions required by law, its Certificate of Incorporation and its Bylaws in order to consummate the transactions contemplated by this Agreement. This Agreement has been duly and validly executed and delivered by each AT&T Party and constitutes the valid and binding obligation of each AT&T Party and is enforceable in accordance with its terms, except as enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors' rights generally. (iv) No Conflicts. No filing with, and no permit, authorization, consent or approval of, any state or federal public body or authority is necessary for the execution of this Agreement by any AT&T Party or, except for filings under the Exchange Act, the HSR Act and the Communications Act, and the filings required under the Merger Agreement, the consummation by each AT&T Party of the transactions contemplated hereby, except where the failure to obtain such consent, permit, authorization, approval or filing would not prevent such AT&T Party from performing its obligations hereunder. None of the execution and delivery of this Agreement by each AT&T Party, the consummation by such AT&T Party of the transactions contemplated hereby or compliance by such AT&T Party with any of the provisions hereof (1) conflicts with or results in any breach of any applicable organizational documents applicable to such AT&T Party, (2) results in a violation or breach of, conflicts with, or constitutes (with or without notice or lapse of time or both) a default (or gives rise to any third party right of termination, cancellation, material modification or acceleration) under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, contract, commitment, arrangement, understanding, agreement or other instrument or obligation of any kind to which such AT&T Party is a party or by which such AT&T Party or any of such AT&T Party's properties or assets may be bound, or (3) violates, subject, with respect to consummation of the transactions contemplated hereby or compliance with the provisions hereof, to filings under the Exchange Act, the HSR Act and the Communications Act, and the filings required under the Merger Agreement, any order, writ, injunction, decree, judgment, order, statute, rule or regulation applicable to such AT&T Party or any of such AT&T Party's properties or assets, in each such case except to the extent that any conflict, breach, default or violation would not prevent such AT&T Party from performing its obligations hereunder. (v) No Encumbrances. The Shares subject to this Agreement and the certificates representing such Shares are held by Holding, or by a nominee or custodian for the benefit of Holding, free and clear of all proxies, voting trusts or agreements, understandings or arrangements or any other encumbrances whatsoever. (vi) No Solicitation. Until the earlier of the Effective Time or termination of the Merger Agreement in accordance with its terms, no AT&T Party shall, in its capacity as such a stockholder and subject to Section 8, directly or indirectly, solicit (including by way of furnishing information) or respond to any inquiries or the making of any proposal by any person or entity (other than Parent or any affiliate of Parent) with respect to the Company that constitutes a Transaction Proposal. (vii) Restriction on Transfer, Proxies and Non-Interference. Until the first to occur of the Effective Time or termination of the Merger Agreement in accordance with its terms, Holding shall not (and the Other AT&T Parties shall not cause Holding to) directly or indirectly: (i) offer for sale, sell, transfer, tender, pledge, encumber, assign or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to or consent to the offer for sale, sale, transfer, tender, pledge, encumbrance, assignment or other disposition of, any or all of the Shares subject to this Agreement, or any interest therein; (ii) grant any proxies or powers of attorney, deposit any Shares into a voting trust or enter into a voting agreement with respect to any Shares; or (iii) take any action that would make any representation or warranty of the AT&T Parties contained herein untrue or incorrect or have the effect of preventing or disabling any AT&T Party from performing such AT&T Party's obligations under this Agreement. (viii) Waiver of Appraisal Rights. Holding hereby waives any rights of appraisal or rights to dissent from the Merger that Holding may have pursuant to Section 262 of the Delaware General Corporation Law. (ix) Reliance by Parent. Each AT&T Party understands and acknowledges that Parent is entering into, and causing Sub to enter into, the Merger Agreement in reliance upon each AT&T Party's execution and delivery of this Agreement. (b) Parent hereby represents and warrants to each AT&T Party as follows: (i) Organization, Standing and Power. Parent is a corporation duly formed and validly existing under the laws of the State of Delaware, with adequate corporate power and authority to own its properties and carry on its business as presently conducted. Parent has the corporate power and authority to enter into and perform all of Parent's obligations under this Agreement and to consummate the transactions contemplated hereby. (ii) Execution, Delivery and Performance. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the Board of Directors of Parent, and Parent has taken all other actions required by law, its Certificate of Incorporation and its Bylaws in order to consummate the transactions contemplated by this Agreement. This Agreement has been duly and validly executed and delivered by Parent and constitutes the valid and binding obligation of Parent and is enforceable in accordance with its terms, except as enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors' rights generally. (iii) No Conflicts. No filing with, and no permit, authorization, consent or approval of, any state or federal public body or authority is necessary for the execution of this Agreement by Parent or, except for filings under the HSR Act, filings under the Communications Act, and the filings required under the Merger Agreement, the consummation by Parent of the transactions contemplated hereby, except where the failure to obtain such consent, permit, authorization, approval or filing would not interfere with Parent's ability to perform its obligations hereunder. None of the execution and delivery of this Agreement by Parent, the consummation by Parent of the transactions contemplated hereby or compliance by Parent with any of the provisions hereof (1) conflicts with or results in any breach of any applicable organizational documents applicable to Parent, (2) results in a violation or breach of, conflicts with, or constitutes (with or without notice or lapse of time or both) a default (or gives rise to any third party right of termination, cancellation, material modification or acceleration) under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, contract, commitment, arrangement, understanding, agreement or other instrument or obligation of any kind to which Parent is a party or by which Parent or any of Parent's properties or assets may be bound, or (3) violates, subject, with respect to the consummation of the transactions contemplated hereby or compliance with the provisions hereof, to filings under the Exchange Act, the HSR Act and the Communications Act, and the filings required under the Merger Agreement, any order, writ, injunction, decree, judgment, order, statute, rule or regulation applicable to Parent or any of Parent's properties or assets, in each such case except to the extent that any conflict, breach, default or violation would not interfere with the ability of Parent to perform its obligations hereunder. 6. Stop Transfer. Each AT&T Party agrees with, and covenants to, Parent that Holding shall not (and the Other AT&T Parties shall not cause Holding to) request that the Company register the transfer (book-entry or otherwise) of any certificate or uncertificated interest representing any of Holding's Shares, if such transfer is in violation of this Agreement (including the provisions of Section 2 hereof). In the event of a stock dividend or distribution, or any change in the Company Common Stock by reason of any stock dividend, split-up, recapitalization, combination, exchange of shares or the like, the term "Shares" shall be deemed to refer to and include the Shares as well as all such stock dividends and distributions and any shares into which or for which any or all of the Shares may be changed or exchanged. 7. Termination. Except as otherwise provided herein, the covenants and agreements contained herein with respect to the Shares shall terminate upon the termination of the Merger Agreement in accordance with its terms by Parent or the Company. 8. Directors Actions. Notwithstanding anything in this Agreement to the contrary, the covenants and agreements set forth herein shall not prevent any designees of the AT&T Parties serving on the Company's Board of Directors from taking any action, subject to the applicable provisions of the Merger Agreement, while acting in such designee's capacity as a director of the Company. 9. Miscellaneous. (a) Assignment. Each AT&T Party agrees that this Agreement and the obligations hereunder shall attach to Holding's Shares and shall be binding upon any person or entity to which legal or beneficial ownership of such Shares shall pass, whether by operation of law or otherwise. Notwithstanding any transfer of Shares, the transferor shall remain liable for the performance of all obligations under this Agreement of the transferor. (b) Amendments, Waivers, Etc. This Agreement may not be amended, changed, supplemented, waived or otherwise modified or terminated, except upon the execution and delivery of a written agreement executed by the parties hereto. (c) Notices. All notices, requests claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly received if so given) by hand delivery, telegram, telex or telecopy, or by mail (registered or certified mail, postage prepaid, return receipt requested) or by any courier service, such as Federal Express, providing proof of delivery. All communications hereunder shall be delivered to the respective parties at the following addresses: If to the AT&T Corp. AT&T Parties: 131 Morristown Road Basking Ridge, New Jersey 07920 Attn: Corporate Secretary Telecopy: (908) 204-8574 If to Parent Ranger Holdings Corp. of Sub: c/o Hicks, Muse, Tate & Furst Incorporated 200 Crescent Court, Suite 1600 Dallas, Texas 75201 Attn: Lawrence D. Stuart, Jr. Telecopy: (214) 740-7313 copy to: Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, New York 10153 Attn: Stephen E. Jacobs, Esq. Telecopy: (212) 310-8007 If to the Company: LIN Television Corporation Four Richmond Square, Suite 200 Providence, Rhode Island 02906 Attn: President Telecopy: (401) 454-2817 copy to: Simpson Thacher & Bartlett 425 Lexington Avenue New York, New York 10017 Attn: David B. Chapnick, Esq. Telecopy: (212) 455-2502 or to such other address as the person to whom notice is given may have previously furnished to the others in writing in the manner set forth above. (d) Severability. Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein. (e) Specific Performance. Each of the parties hereto recognizes and acknowledges that a breach by it of any covenants or agreements contained in this Agreement will cause the other party to sustain damages for which it would not have an adequate remedy at law for money damages, and therefore each of the parties hereto agrees that in the event of any such breach the aggrieved party shall be entitled to the remedy of specific performance of such covenants and agreements and injunctive and other equitable relief in addition to any other remedy to which it may be entitled, at law or in equity. (f) Remedies Cumulative. All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise of any thereof by any party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party. (g) No Waiver. The failure of any party hereto to exercise any right, power or remedy provided under this Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other party hereto with its obligations hereunder, and any custom or practice of the parties at variance with the terms hereof, shall not constitute a waiver by such party of its right to exercise any such or other right, power or remedy or to demand such compliance. (h) No Third Party Beneficiaries. Except as provided in Section 2(b), this Agreement is not intended to be for the benefit of, and shall not be enforceable by, any person or entity who or which is not a party hereto. (i) Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Delaware, without giving effect to the principles of conflicts of law thereof. (j) Descriptive Headings. The descriptive headings used herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. (k) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same Agreement. IN WITNESS WHEREOF, Parent, Sub and each AT&T Party have caused this Agreement to be duly executed as of the day and year first above written. RANGER HOLDINGS CORP. By:______________________ Name: Title: RANGER ACQUISITION CORP. By:_______________________ Name: Title: AT&T CORP. By:_______________________ Name: Title: AT&T WIRELESS SERVICES, INC. By:_______________________ Name: Title: MMM HOLDINGS, INC. By:_______________________ Name: Title: AGREED TO AND ACKNOWLEDGED (with respect to Sections 2(b) and 7 hereof and for purposes of acknowledging its consent hereto): LIN TELEVISION CORPORATION By: Name: Title: EX-99 3 EXH. 99.2 LIN TV PRESS RELEASE HICKS, MUSE, TATE & FURST WILL ACQUIRE LIN TELEVISION IN $1.7 BILLION TRANSACTION ESTABLISHING HICKS MUSE AS MAJOR PARTICIPANT IN TELEVISION BROADCASTING INDUSTRY -- Hicks Muse Will Also Acquire, Through LIN, the NBC Affiliate in Grand Rapids, Michigan, in a Separate Transaction Valued At Approximately $122.5 Million -- DALLAS, Tex., PROVIDENCE, R.I., and BASKING RIDGE, N.J., August 12, 1997 -- Hicks, Muse, Tate & Furst Incorporated ("Hicks Muse"), LIN Television Corporation ("LIN" or "LIN Television") (Nasdaq: LNTV), and AT&T Corp. ("AT&T") today announced the signing of a definitive agreement under which Hicks Muse will acquire LIN, the nation's 22nd-largest television group, for approximately $1.7 billion. The transaction, to which Hicks Muse has committed over $600 million of equity capital, is the largest investment by Hicks Muse since the firm's formation in 1989. Hicks Muse and LIN management, headed by LIN President and Chief Executive Officer Gary R. Chapman, together plan to utilize LIN as a platform from which to execute the buy-and-build strategy Hicks Muse has successfully employed over the past several years in radio broadcasting and other industries. LIN owns and operates eight network-affiliated televisions stations--including its flagship station, KXAS, the NBC affiliate in Dallas. LIN also operates four additional stations under local marketing agreements (LMAs), including KXTX-TV, the pre-eminent local sports station in Dallas. LIN was formed in December 1994 as a spinoff from LIN Broadcasting Corporation. AT&T currently owns approximately 45 percent of LIN Television. Under the terms of the definitive agreement, which was unanimously approved by the Board of Directors of LIN Television, a newly formed affiliate of Hicks Muse will merge with LIN in a transaction in which LIN shareholders will receive consideration of $47.50 per share in cash, plus interest at an effective rate of 8% per annum (approximately $0.3123 per share per month) from the earlier of the shareholder vote or December 31, 1997, through the completion of the transaction. The total transaction value is based on the approximately 30.6 million shares of LIN on a fully diluted basis and the LIN debt, which is expected to be approximately $260 million (net of cash) as of December 31, 1997. It is expected that a meeting of LIN Television stockholders to vote on the merger will take place prior to November 30, 1997. If the merger is approved by stockholders and certain other conditions are satisfied, the transaction is expected to close in early 1998, but in no event later than May 12, 1998. If stockholder approval is obtained on November 30, 1997 and the merger becomes effective on April 30, 1998, the purchase price adjusted to include the incremental amount would be $49.0721 in cash per share. Contemporaneously, AT&T, Hicks Muse and LIN Television have entered into an agreement pursuant to which AT&T will sell its 100%-owned WOOD-TV (Grand Rapids, Michigan) together with its local marketing agreement with WOTV for approximately $122.5 million, subject to certain adjustments, to a Hicks Muse affiliate when the merger of LIN Television and that affiliate occurs. If the merger does not occur, WOOD-TV and its local marketing agreement with WOTV will be purchased by LIN Television. The WOOD-TV agreement is not subject to LIN Television stockholder approval. Completion of the transaction is subject to various conditions, including approval by the Federal Communications Commission of the transfer of LIN Television's broadcast licenses, approval of the merger by the holders of a majority of outstanding LIN Television common stock, additional approval of the merger by the holders of a majority of the outstanding shares of LIN Television common stock excluding shares (representing approximately 45 percent of the outstanding shares) owned by AT&T, funding of the transaction under debt and equity commitments that have been secured, and the expiration of the applicable Hart-Scott-Rodino waiting period. AT&T has agreed that it will vote its LIN Television shares in favor of the merger if the merger is approved by the holders of a majority of the outstanding LIN Television shares, other than those owned by AT&T. Cook Inlet Communications Corp., the holder of approximately 5 percent of the outstanding LIN shares, has agreed to vote its shares in favor of the merger. In addition, Cook Inlet and AT&T have terminated a pre-existing agreement with respect to the voting of their shares regarding the election of directors. LIN Television may terminate the merger agreement prior to receipt of stockholder approval and accept a proposal determined by its Board of Directors to be more favorable to the LIN Television stockholders than the announced merger agreement, subject to the payment of a termination fee to Hicks Muse. Following completion of the transaction, LIN will retain its name, Providence, R.I., headquarters, all station personnel and its management team. That team has built LIN into one of the nation's most successful, technologically advanced and highly regarded television broadcasting groups, with an industry-leading consolidated broadcast cash flow margin of 48 percent. Thomas O. Hicks, Chairman and Chief Executive Officer of Hicks Muse, said: "We are tremendously pleased to be partnering with Gary Chapman and his management team, which has built LIN into one of the country's best-run and most profitable groups of network-affiliated television stations. By combining the financial and broadcasting industry expertise of Hicks Muse and LIN, we plan to capitalize on the unique and favorable conditions now present in the television broadcasting industry and be an active participant in the future of network television. We will utilize the extensive experience of Hicks Muse in the radio industry, where we have helped establish Chancellor Broadcasting and Capstar Broadcasting as two of the nation's most successful radio groups in their respective market segments over the past four years." Gary R. Chapman, President and Chief Executive Officer of LIN Television, said: "I am proud of the accomplishments that the management and employees of LIN have achieved over the past few years in building LIN into one of the premier television companies in the nation. Tom Hicks and his colleagues at Hicks Muse have established a successful model for helping top-quality operators increase value through the execution of a buy-and-build philosophy. We at LIN fully share their vision for what LIN Television can be, and look forward to transforming that vision into a near-term reality." "The decision to sell LIN Television is part of our aggressive effort to ensure that AT&T's portfolio includes only businesses central to our communications services strategy," said Dan Somers, AT&T Senior Executive Vice President and Chief Financial Officer. "This transaction follows the sales of AT&T Capital Corp., AT&T Submarine Systems and AT&T SkyNet, and enables AT&T to continue to redeploy its assets into new investment opportunities." AT&T acquired its stake in LIN Television through the September 1994 merger with McCaw Cellular Communications, which indirectly held a majority of LIN Television common shares. Last December, AT&T announced that it was reviewing its investment in LIN and evaluating alternatives that could result in the disposition, either through public or private sales, of some or all of the 13.5 million shares of LIN Television common stock it holds. In connection with the spinoff of LIN Television from LIN Broadcasting Corporation in December 1994, LIN Television and the predecessor of a subsidiary of AT&T entered into a private market value guarantee, which, among other things, provides for an appraisal and sale of LIN Television in 1998. Under the guarantee, appraisers would have determined a private market value of LIN Television and AT&T would have had the option to purchase, at the appraised price, the approximately 55 percent of LIN Television it does not own. If AT&T were to decline to exercise its option, then LIN Television (including AT&T's approximately 45 percent) would be put up for sale under the direction of LIN Television's independent directors. Under the terms of an amendment to the guarantee, AT&T has relinquished its option to purchase the approximately 55 percent of LIN Television it currently does not own, the requirement that appraisers be appointed has been eliminated, and the commencement date of any sale process under the guarantee has been deferred and will only occur if the merger of LIN Television with an affiliate of Hicks Muse does not occur. LIN Television was advised by Wasserstein Perella & Co., Inc. and Morgan Stanley & Co. Incorporated with regard to the proposed transaction. Wasserstein Perella also acted as advisor to the Independent Directors. The Chase Manhattan Bank and Chase Securities, Inc. have provided financing commitments with regard to the transaction and Chase Securities served as financial advisor to Hicks Muse with regard to the transaction. LIN's owned and operated stations and LMAs include: Market Station DMA Channel Network LMA - ------------------------------------------------------------------------- Dallas-Fort Worth KXAS #8 5 NBC KXTX/39/Ind Indianapolis WISH #25 8 CBS -- New Haven-Hartford WTNH #27 8 ABC WBNE/59/WB Buffalo WIVB #39 4 CBS -- Norfolk-Portsmouth WAVY #40 10 NBC WVBT/43/WB-FOX Austin KXAN #63 36 NBC KNVA/54/WB Decatur WAND #82 17 ABC -- Fort Wayne WANE #103 15 CBS -- AT&T-owned station Grand Rapids WOOD #37 8 NBC WOTV/41/ABC In November 1996, Hicks Muse announced that it had launched a television broadcasting investment initiative called Sunrise Television to pursue acquisitions of television properties in DMAs (markets) ranked 50 to 150 by A. C. Nielsen, and had agreed to purchase four middle-market television stations in transactions valued at a total of approximately $160 million. Those transactions were completed in February, and Hicks Muse, together with the Sunrise management team headed by Robert N. Smith, have subsequently agreed to acquire three additional middle- to small-market stations in transactions totaling approximately $45 million. Those transactions are currently pending. Hicks Muse has no current plans to combine the activities of Sunrise Television with those of LIN Television, whose broadcasting properties are primarily in larger markets. It is anticipated that LIN will focus on acquisitions in markets ranked 1 to 50 and Sunrise will acquire stations in markets ranked 50 to 150. Since its formation in 1989, Hicks, Muse, Tate & Furst Incorporated has completed or currently has pending more than 100 transactions with a total capital value in excess of $22 billion. Headquartered in Dallas, the firm also has offices in New York, St. Louis and Mexico City. * * * -----END PRIVACY-ENHANCED MESSAGE-----