Printer Friendly

CENTEL TO EXPLORE STRATEGIC ALTERNATIVES

 CENTEL TO EXPLORE STRATEGIC ALTERNATIVES
 CHICAGO, Jan. 23 /PRNewswire/ -- Centel Corp. (NYSE: CNT) announced


today that it has retained the investment banking firms of Goldman Sachs & Co. and Morgan Stanley & Co. Inc. to explore strategic alternatives to maximize shareowner value, including the possible sale of the company. Centel's board took the action at a meeting late Wednesday.
 "A combination of factors, including the prices currently being realized for telephone and cellular properties, the likelihood of future consolidation in the telecommunications industry, and the exceptional value and attractiveness of our own properties in both the telephone and cellular areas, has led us to the conclusion that now is the right time to pursue opportunities that may be available to maximize value for our shareowners," said John P. Frazee Jr., Centel's chairman and chief executive officer.
 Frazee added: "Although we have no specific timetable, we have asked our investment advisors to proceed as expeditiously as possible with their exploration of available alternatives in order to minimize any disruption and uncertainty for the company and its employees."
 "Any sale of Centel's regulated businesses, if that should be proposed as a result of the process, would require approval of regulatory authorities and would be undertaken only if we are convinced that the interests of our customers and the communities we serve are fully protected."
 Chicago-based Centel Corp., which had 1990 revenues of $1.15 billion, provides local exchange telephone service in seven states through nearly 1.6 million access lines, and manages cellular communications systems in 44 metropolitan areas and in more than 50 rural service areas.
 CENTEL CORP. BACKGROUND
 Chicago-based Centel Corp., which had 1990 revenues of $1.15 billion, provides local telephone service in seven states and operates cellular communications franchises in 44 metropolitan markets.
 The company was formed in 1926 when McGraw Electric spun off its operating utilities into a new corporation -- Centel West Public Service Company, the parent company for more than 20 formerly separate electric and telephone properties. The company was renamed Central Telephone & Utilities Corp. in 1968, and in 1982 the name was officially changed to Centel Corp.
 Here is breakdown of the operating units of Centel:
 CENTRAL TELEPHONE COMPANY
 Central Telephone Company operates one of the largest non-Bell telephone systems in the nation with nearly 1.6 million access lines in seven states. Operating units of Central Telephone Company are:
 Central Telephone Company of Florida
 Headquarters: Tallahassee, Fla.
 Access lines: 276,000
 Central Telephone Company of Illinois/Ohio
 Headquarters: Des Plaines, Ill.
 Access lines: 244,000
 Central Telephone Company of Nevada/Texas
 Headquarters: Las Vegas, Nev.
 Access lines: 612,000
 Central Telephone Company of Virginia/North Carolina
 Headquarters: Charlottesville, Va.
 Access lines: 438,000
 CENTEL CELLULAR COMPANY
 Centel's Chicago-based cellular communications subsidiary currently has operating control of 44 markets in 14 states and minority interest in 32 metropolitan areas including Chicago, New York, Houston and Kansas City. Centel's cellular markets have a combined population of approximately 18.7 million. The company serves more than 230,000 customers within its operating markets and recently has begun service in several rural service areas. Operating regions of Centel Cellular are:
 Florida/South Carolina/Alabama Region
 Communities: Tallahassee, Ft. Walton Beach, Gainesville and Panama City, Fla.; Charleston and Greenville, S.C.; and Dothan, Ala.
 Midwest Region
 Communities: Cedar Rapids/Iowa City, Dubuque and Waterloo, Iowa; South Bend/Elkhart, Ind.; Mansfield, Youngstown/Sharon and Toledo/Lima, Ohio; Peoria, Ill.
 North Carolina Region
 Communities: Greensboro, Hickory, Raleigh/Burlington, Fayetteville and Wilmington/Jacksonville.
 Pennsylvania/Virginia/Tennessee Region
 Communities: Harrisburg/York/Lancaster, Pa.; Norfolk/Newport News, Lynchburg, Danville, Charlottesville and Petersburg/Colonial Heights, Va.; and Tri-Cities, Tenn.
 West Region
 Communities: Sioux City, Iowa; Las Vegas, Nev.; Killeen/Temple/Waco, Longview/Tyler/Marshall, and Laredo, Texas; and rural service areas in New Mexico that include Santa Fe.
 -0- 1/23/92
 /CONTACT: William K. White of Centel Corp., 312-399-2735/
 (CNT) CO: Centel Corp. ST: Illinois IN: TLS SU: FC -- NY019 -- 2647 01/23/92 09:19 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 23, 1992
Words:661
Previous Article:MEDSTAT SYSTEMS ANNOUNCES RECORD Q1 RESULTS AND STOCK SPLIT
Next Article:MOUNTAINEER BANKSHARES OF W.VA., INC., ANNOUNCES FIRST QUARTER DIVIDEND
Topics:


Related Articles
CENTEL TO SELL OHIO TELEPHONE OPERATIONS TO CENTURY
CENTEL TO SEEK PROPOSALS FOR PURCHASE OF ALL OR PARTS OF THE COMPANY
CENTEL, UNITED STATES CELLULAR COMPLETE MULTI-MARKET TRADE
GTE WILL NOT PARTICIPATE IN CENTEL AUCTION
CENTEL COMPLETES SALE OF OHIO TELEPHONE OPERATION TO CENTURY
SPRINT AND CENTEL TO MERGE
SPRINT, CENTEL TO DISCUSS MERGER MAY 28 IN NEW YORK
CENTEL, SPRINT FILE IN NORTH CAROLINA FOR STATE REGULATORY APPROVAL OF MERGER
SPRINT AND CENTEL MERGER REGISTRATION STATEMENT IS DECLARED EFFECTIVE
EAGLE NOTES $39 STAND-ALONE TRADING VALUE FOR CENTEL CALLS FOR REVISION OF COMPANY'S $29 ESTIMATE

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters