-----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, chhkpX1OV0Kvbs30AvYRjP/ee6+NUBVRvNwfbCuRkyByPEJqJL7tdS1ajeCiYhF2 id6QQ+HfAmXjPuuMmgC9mQ== 0000084567-94-000042.txt : 19941017 0000084567-94-000042.hdr.sgml : 19941017 ACCESSION NUMBER: 0000084567-94-000042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941010 ITEM INFORMATION: Other events FILED AS OF DATE: 19941011 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROCHESTER TELEPHONE CORP CENTRAL INDEX KEY: 0000084567 STANDARD INDUSTRIAL CLASSIFICATION: 4813 IRS NUMBER: 160613330 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04166 FILM NUMBER: 94552292 BUSINESS ADDRESS: STREET 1: ROCHESTER TEL CENTER STREET 2: 180 S CLINTON AVE CITY: ROCHESTER STATE: NY ZIP: 14646-0995 BUSINESS PHONE: 7167771000 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 10, 1994 Rochester Telephone Corporation (Exact name of registrant as specified in its charter) New York 1-4166 16-0613330 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 180 South Clinton Avenue Rochester, New York 14646 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (716) 777-1000 100 Midtown Plaza, Rochester, New York (Previous address of principal executive offices) Item 5 Other Events On October 10, 1994, Rochester Telephone Corporation ("RTC")and WCT Communications, Inc. ("WCT"), jointly announced that RTC has made a tender offer for WCT. As permitted by General Instruction F to Form 8-K, the Registrant incorporates by reference the information contained in the press release which is filed as an Exhibit to this Report on Form 8-K. 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 of the undersigned hereunto duly authorized. Rochester Telephone Corporation (Registrant) Dated: October 11, 1994 By: Barbara J. Laverdi ---------------------------- Barbara J. LaVerdi Assistant Secretary 2 EXHIBIT INDEX Exhibit Number Description - - -------------- --------------- 99 Press Release dated Filed herewith October 10, 1994 regarding tender offer for WCT Communications, Inc. EX-99 2 TEST EXHIBIT 99 Contact: See last page Rochester Tel 180 South Clinton Avenue Rochester, NY 14646-0700 Media Relations: Phone (716) 777-1090 Fax (716) 325-4624 For Release: October 10, 1994 Summary: ROCHESTER TEL TO ACQUIRE WCT COMMUNICATIONS RCI Expands to Become Nationwide Company Rochester, New York -- October 10, 1994 -- In its largest long distance acquisition to date, Rochester Telephone Corporation (NYSE: RTC) will acquire the California-based WCT Communications, Inc. (NASDAQ: WCTI). Rochester Tel and WCT announced that they signed a Letter of Intent which provides that Rochester Tel will make a cash tender offer for all of the stock of WCT for $7.325 in cash for each share of WCT, as more fully described later in this release. The total consideration will be approximately $110 million in cash. The transaction is subject to several conditions, including the approval of the Rochester Tel Board of Directors, the WCT Board, necessary regulatory approvals, and appropriate due diligence. Once the transaction is finalized, WCT's interexchange operations will be merged into Rochester Tel's long distance operation, RCI Long Distance. RCI, with annualized revenues of over $300 million, is currently the nation's ninth largest long distance carrier. WCT had revenues of $103 million in its fiscal year ended June 30, 1994. 2 "This acquisition is an important milestone for Rochester Tel and the next logical step for RCI," said Ronald L. Bittner, Rochester Tel's chief executive officer. "The acquisition of WCT will accelerate RCI's nationwide long distance expansion by at least a year. Geographically, WCT is an excellent match, with service in 45 states and switches in major metropolitan areas we have already targeted for expansion," said Bittner. WCT has switches in Los Angeles, San Francisco, Chicago, Dallas, Atlanta and Seattle, while RCI maintains switches in Philadelphia, Cleveland, Atlanta, Chicago, New York City, Washington, DC, Rochester, NY, Burlington, VT and Manchester, NH. RCI, which was launched as a regional long distance carrier in 1984, has introduced 1-plus services nationwide over the last several years and now markets in 20 states in the Midwest, South and Northeast. Bittner added that WCT's customer base of small and mid-sized business, and its growing retail presence, are a good match for RCI. "RCI also has a strong base of mid-sized business accounts," said Bittner, "and a growing retail base. RCI's retail revenues increased by 43 percent in 1993 alone." A significant contributor to the growth has been the popularity of RCI's Budget Call service, a direct-dial retail product offering that does not require a customer to change long distance carriers, now available in 16 states. "This transaction is the right fit for WCT," said Richard Frockt, chief executive officer of WCT. "We have built a strong company that now needs to be part of a larger organization such as Rochester Tel and 3 RCI. Our compatible philosophies and Rochester Tel's reputation as a leader in the industry make this an excellent alliance." Of the $7.325 per share, approximately $7.05 will be paid in cash for each share of WCT common stock outstanding on the closing of the tender offer and approximately $.27 will be payable for each share and for each option and warrant to purchase a share of WCT. The $.27 shall be deposited into escrow at the closing to cover the costs and potential liability of certain litigation against WCT. Any amounts not so used will be distributed to the holders of share options and warrants as described above. The cash tender offer will be followed by a cash merger in which any shares not tendered will be acquired at the same price. The Letter of Intent provides that the acquisition will not be subject to a financing contingency. Richard Frockt and Christopher Edgecomb, executive vice president, who between them hold approximately 30 percent of WCT's outstanding common stock, have agreed to tender their shares to Rochester Tel in connection with the offer. The tender offer will commence no later than October 17, 1994, subject to the negotiation and execution of definitive documentation and the approval of the acquisition by the respective Boards of Directors of Rochester Tel and WCT no later than noon, New York City time, on October 16, 1994. If the respective Boards of Directors of Rochester Tel and WCT have not approved the acquisition by such time, the Letter of Intent may be terminated by either party. 4 Since definitive agreements remain to be negotiated, there can be no assurance that a transaction will ultimately be consummated. The transaction requires various regulatory approvals, including that of the New York State Public Service Commission ("NYSPSC"). Rochester Tel has acquired four other long distance companies over the last three years: Long Distance North (Burlington, VT) and Taconic Long Distance (Albany, NY) in 1991, and Budget Call Long Distance and Mid Atlantic Telecom (Washington, DC) in 1993. Total long distance revenues have grown from less than $144 million in 1990 to annualized revenue of more than $300 million for 1994. Based in Rochester, New York, Rochester Telephone Corporation is a provider of integrated telecommunications services to more than 1.5 million customers in 32 states in the Northeast, Midwest and South. Rochester Tel's principal lines of business are long distance service, local telephone operations and cellular service. Its innovative Open Market Plan, which would make Rochester the first community in the country to be open to competition for local telephone service, will be considered by the NYSPSC on October 13. PROFILE OF BOTH COMPANIES FOLLOWS. MAP OF COMBINED OPERATION AVAILABLE THROUGH PR NEWSWIRE PHOTOSHOP. Contacts: For Rochester Tel: Linda J. Crociata (media) -- (716) 777-7693 Philip H. Yawman (investors) -- (716) 777-6179 John K. Purcell, Corporate V.P.- Partnering & Alliances-(716)777-7944 Louis L. Massaro, Corporate V.P. and Treasurer -- (716) 777-7940 For WCT Communications: Martin Nason, Chief Financial Officer -- (805) 963-2423 5 COMBINED RCI/WCT PROFILE Revenues: $366 million Switch locations: 13 WCT Communications, Inc. Revenues for fiscal year ending June 30, 1994: $103 million WCT entered the long distance business in 1989. The company has two primary areas of business: wholesale services in which the company provides termination services for other long distance carriers and resellers; and retail services in which the company provides both long distance and local services, principally to small and mid-size businesses. WCT controls one of the most extensive long-distance networks in California. In its fiscal year ended June 30, 1994, WCT's wholesale and retail commercial customers accounted for approximately 60 percent and 40 percent, respectively, of total revenues. RCI - Rochester Tel's Long Distance Operation 1993 Revenues: $263 million RCI Long Distance provides a full range of long distance voice, video and data communications services for business and residential customers in the Northeast, Midwest, Mid-Atlantic and several southern states. Through reciprocal arrangements with other long distance carriers, RCI provides interconnections to the entire United States and 200 countries around the world, including direct dial services between countries outside of the U.S. Launched in 1984, RCI has built a robust network employing digital switching systems, fiber optics, terrestrial microwave and SS7, the latest industry-standard switching technology. With a network availability rating of 99.9976 percent, the RCI network exceeds the industry benchmarks for excellence. Growth in long distance services over the past several years has come from sales and marketing of the company's products; numerous value-oriented programs and partnerships; the establishment of a resale operation in communities served by the company's telephone subsidiaries; and the acquisition of four long distance companies. # # # A chart depicting the Combined RCI/WCT Network is attached to the press release. The chart indicates RCI Switching Centers, RCI DS-3 Major Points of Presence, RCI DS-3 Backbone Network, WCT Switching Centers, WCT DS-3 Major Points of Presence and WCT DS-3 Back Network across the continental U.S. -----END PRIVACY-ENHANCED MESSAGE-----