-----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, Vd4D5ipJaO36CUPTTkM0j6m+t3pfpoNlFcCgSKryNYDCcw/O+G2/2bKWXMXhJU7L 0mQsqUBXIwfI+Ewhr9OMGw== 0000005907-99-000003.txt : 19990111 0000005907-99-000003.hdr.sgml : 19990111 ACCESSION NUMBER: 0000005907-99-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990108 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990108 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: SEC FILE NUMBER: 001-01105 FILM NUMBER: 99502624 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 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: January 8, 1999 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. January 8, 1999 Item 5. Other Events. See Exhibit 99 to this Form 8-K. Item 7. Financial Statements and Exhibits. (c) Exhibits. Exhibit 99.1 AT&T Corp. Press Release issued January 8, 1999 entitled "AT&T Publicly Files TCI Merger Proxy; Expects to Begin Mailing to Shareowners Shortly; Announces Plans for Stock Repurchase and Stock Split." Exhibit 99.2 AT&T Corp. Press Release issued January 8, 1999 entitled "AT&T Provides Financial Guidance for 1999." Exhibit 99.3 AT&T Corp. Press Release issued January 8, 1999 entitled "AT&T Reaches Agreements To Form Commercial Joint Ventures With Five Cable Operators." Form 8-K AT&T Corp. January 8, 1999 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. /s/ Marilyn J. Wasser ----------------------------------- By: Marilyn J. Wasser Vice President and Secretary January 8, 1999 EX-99 2 PRESS RELEASE Exhibit 99.1 AT&T Publicly Files TCI Merger Proxy; Expects to Begin Mailing to Shareowners Shortly; Announces Plans for Stock Repurchase and Stock Split FOR RELEASE: Friday, January 8, 1999 NEW YORK - AT&T said today that it has publicly filed the TCI merger proxy with the Securities and Exchange Commission and is awaiting SEC clearance to begin mailing copies to its shareowners. The proxy mailing is in preparation for a special shareowner meeting the company expects to hold on February 17, 1999, at the Meadowlands Exposition Center in Secaucus, N. J., to vote on the merger. To win approval, more than 50 percent of AT&T's outstanding common shares must be voted in favor of the proposed merger. "As we begin the New Year, AT&T and TCI are right on track with our ambitious timetable for the pending merger," said AT&T Chairman C. Michael Armstrong. "We expect to complete the merger in the first quarter of 1999, presuming shareholder and regulatory approvals." Armstrong also said AT&T's Board of Directors has authorized the repurchase of up to $4 billion of AT&T common stock. The company intends to repurchase shares from time to time prior to the closing of the TCI merger through an open market share repurchase program. It will reissue the repurchased shares as part of the shares to be issued for TCI. Purchases may not commence immediately and will be subject to market conditions and SEC regulations, which could limit the actual number purchased. "In addition, the Board has announced its intention, following the completion of the TCI merger, to declare a three-for-two stock split of the company's common stock," Armstrong said. "This split further demonstrates our confidence in AT&T's continued growth. As the country's most widely-held stock, it will ensure that each share is affordably priced." In a three-for-two split, AT&T's shareowners would receive an additional share of stock for every two shares they own on the record date of the split. Finally, the company also reported that it will not create a consumer services tracking stock at this time in order to focus on fully integrating its acquisitions. "The acquisitions and investments we've made over the last year will transform AT&T from a company dominated by a single product line - long distance voice - into the leader in a new generation of advanced communications, information and video services," said Armstrong. "But we have to be able to fully integrate these assets to deliver their true value to our customers. That's why we have decided to consolidate our acquisitions before considering the creation of a tracking stock. We believe that's in the best interests of our customers and our shareowners." John C. Malone, Chairman of Tele-Communications, Inc., who will become a director of AT&T and one of its largest shareowners following the TCI merger, agreed. "Under Mike Armstrong's stewardship, AT&T represents a unique set of complementary assets," he said. "Making sure these assets are operationally integrated before adding the complications of a separate tracking stock is the right thing to do. I am personally extremely pleased with this decision, as is the TCI Board, and I am confident that TCI's shareholders will agree." In addition, AT&T said it would further report results by segment so investors can evaluate each part of the business against similar businesses in the industry and understand the company's "sum of the parts" value. As part of the TCI merger, AT&T reiterated plans to issue a separate tracking stock, called Liberty Media Group tracking stock, to holders of TCI's programming and ventures arms (the Liberty Media Group and TCI Ventures Group) to continue such holders' economic interests in the units now represented by those shares. The Liberty Media Group's business will be separately managed and will not be consolidated with the assets of the other AT&T groups. EX-99 3 PRESS RELEASE Exhibit 99.2 AT&T Provides Financial Guidance for 1999 AT&T said today that it expects earnings per share (EPS) from continuing operations for 1999 to be in the range of $4.20 to $4.30, excluding the impact of its planned merger with Tele-Communications, Inc. (TCI) and the separately announced stock split and share repurchase. The company said that as a result of the TCI merger, AT&T expects EPS dilution to be approximately $1.00 per share on a pro forma basis, assuming the merger closes at the end of the first quarter. The company expects 1999 revenue growth to range from five to seven percent on a pro forma basis, including the effect of its planned mergers with TCI and Vanguard Cellular Systems and the previously announced acquisition of the IBM global network business. The company said it expected these acquisitions and investments to transform its revenue, cash-flow and asset base from dependence on a single product line - long distance voice - to a more diversified portfolio of high-growth communications, information and video services. Business Services is expected to increase revenue between seven and nine percent as a result of continued growth in data, local and wholesale services. AT&T Wireless Services plans to continue to expand its national presence and its successful Digital One Rate plan. It expects to report revenue growth, as well as growth in earnings before interest, taxes, depreciation and amortization (EBITDA), in the high teens. AT&T Solutions expects to report revenue growth of about 30 percent, given several major outsourcing contracts signed and announced within the past year. The company also said, as anticipated, that Consumer Services long distance revenue is expected to decline between two to four percent, as a result of declining prices in a hotly competitive market and the substitution of wireless services for calling card and other higher-priced long distance services. As a key part of the company's strategy for growth in overall Consumer Services revenue, AT&T said it is accelerating plans to offer cable telephony services. In 1999, AT&T and TCI expect to conduct ten market trials in which they will co-market voice, video and high-speed data services to customers in two San Francisco Bay area communities, and in Chicago, Dallas, Pittsburgh, Seattle, Denver, Salt Lake City, Portland, Ore., and St. Louis. AT&T said it plans to quickly expand these market trials and to be offering local telephony in most TCI markets in 2000. Initially, the company said it plans to offer circuit switched telephony, but expects to begin to deploy IP technology when it is available in 2000. AT&T said it has made significant progress in transforming its cost structure in 1998. Through the first three quarters of 1998, selling, general and administrative (SG&A) expenses were cut from almost 30 percent of revenue to less than 25 percent. The company expects to lower that ratio to 21 percent for 1999, excluding its wireless and local services businesses, which have a different cost structure requiring additional investment to fund their growth. AT&T estimated that its 1999 pro forma EBITDA would grow in the high teens, to $18 to $20 billion, which would be primarily reinvested in its business. AT&T estimated 1999 capital spending would be approximately $9 to $10 billion. However, the company said it was shifting much of the spending from its core long distance voice network into higher growth areas, primarily wireless, local, and data/IP services. Assuming completion of the TCI merger at the end of the first quarter, total capital spending is expected to range from $11 to $12 billion for the year. This reflects AT&T's decision to accelerate the upgrade of TCI cable systems in certain major metropolitan areas to increase video capacity and add power for telephony applications. #### The foregoing are "forward looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. EX-99 4 PRESS RELEASE Exhibit 99.3 AT&T REACHES AGREEMENTS TO FORM COMMERCIAL JOINT VENTURES WITH FIVE CABLE OPERATORS Jointventures will offer advanced communications services for customers of Bresnan Communications, Falcon Cable TV, Insight Communications, InterMedia Partners and Peak Cablevision For Release: Friday, January 8, 1999 NEW YORK -- AT&T today announced that it had reached agreements with five Tele-Communications, Inc. (TCI) affiliates to form separate joint ventures to offer customers advanced communications services. AT&T expects to finalize joint ventures with Bresnan Communications, Falcon Cable TV, Insight Communications, InterMedia Partners and Peak Cablevision in early 1999, begin piloting the new services later in the year and then begin commercial operations in the year 2000. The joint ventures will offer customers new communications services that feature multiple phone lines per household, along with options such as conference calling, call waiting, call forwarding and individual message centers for family members. In June 1998, AT&T announced plans to merge with TCI, the country's second largest cable operator, passing more than 17 million U.S. households via TCI's cable plant. The announced telephony joint ventures combined will reach an additional five million U.S. households. "These joint ventures bring us another step closer to our goal of giving U.S. consumers a choice in local phone service," said C. Michael Armstrong, chairman and CEO of AT&T. "It's a facilities-based approach that will allow us to deliver on our commitment to provide all-distance telephony service to our customers." AT&T, which expects to own between 51 percent and 65 percent of each of these joint ventures, will have long-term exclusive rights to offer communications services over the systems of each of the five operators in return for one-time payments to be made when the systems meet certain performance milestones. AT&T expects the total of these payments to be in the tens of millions of dollars. In addition the operators will receive ongoing monthly telephony subscriber payments. Each cable company will bear the cost of upgrading its cable system to support two-way communications. Upgrade efforts are currently underway at each of the five cable companies and most expect to complete the process by the end of the year 2000. The telephony joint venture, in each case, will bear the cost of adding communications equipment when a customer signs up for service. AT&T estimates those costs will eventually range from $300 to $500 per home, depending on whether the customer already subscribes to the cable operator's digital video service. Each telephony joint venture will report to Leo Hindery, Jr., the current president of TCI who will head AT&T's new cable services operations once the AT&T-TCI merger is complete. The five cable companies operate in various regions of the country. Following completion of its cable system joint venture with TCI, Bresnan Communications will serve more than 600,000 customers in Michigan, Minnesota, Wisconsin and Nebraska and will pass approximately 900,000 homes. The company is headquarterd in White Plains, N.Y. "I'm excited that our broadband platform will now be associated with the AT&T brand," said William J. Bresnan, president and founder of the cable and telecommunications company. "Through this partnership, we'll be able to deliver an even broader range of telecommunications services." Falcon Cable TV operates systems in 26 states, including Washington, Oregon and California. It serves more than one million customers, passes approximately 1.6 million homes and is headquartered in Los Angeles. Marc B. Nathanson, chief executive officer and founder of Falcon, said, "This is a win-win deal for everyone. For us, it means an expansion into telecommunications services. For AT&T, it means access to the local residential phone market. And for consumers, it means the ease of one-stop shopping for all cable and telecommunications services in small and medium sized communities throughout the country." Insight Communications, which also has customers outside its partnership with TCI, collectively has more than 500,000 customers and passes more than 800,000 homes in seven states, including Illinois, Indiana, Ohio and California and is based in New York City. "These ventures represent a new era in the cable and telecommunications industries," said Michael S. Willner, chief executive officer of Insight. "We're pleased to be a part of the convergence of these industries with the undisputed leader in telecommunications services." InterMedia Partners is based in Nashville and serves more than one million customers and passes nearly 1.6 million homes in four states - Tennessee, Kentucky, Georgia and South Carolina. "I believe this is an exceptional growth opportunity for InterMedia Partners and AT&T," said Robert J. Lewis, managing general partner and CEO for InterMedia Partners. "It allows us to fully utilize our already upgraded network to serve our customers with a single broadband platform for cable and telecommunications services, which they have been seeking." Peak Cablevision serves more than 100,000 customers and passes 180,000 homes primarily in Utah and Oklahoma. Its headquarters are in Englewood, Co. Donne Fisher, president of Peak, said, "We're pleased to be able to offer our customers access to AT&T's quality services and its reputation for reliability." The completion of the joint ventures are subject to a number of conditions including execution of definitive documentation. #### The foregoing are "forward looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. -----END PRIVACY-ENHANCED MESSAGE-----