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
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|Date:||Jan 23, 1992|
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