Printer Friendly

SOUTHNET ISSUES STATEMENT REGARDING MERGER NEGOTIATIONS WITH TELECOM AMERICA

        SOUTHNET ISSUES STATEMENT REGARDING MERGER NEGOTIATIONS
                     WITH TELECOM AMERICA
    TAMPA, Fla., Nov. 14 /PRNewswire/ -- Following an announcement yesterday that it has entered formal negotiations to merge with Telecom America, Southnet Corporation (OTC, PHLX: SN) has provided the following additional information:
    Based on unaudited information, Telecom America has approximately 11,000 subscriber phone lines throughout the United States, which include pay telephones and hotels.  Their account base combined with Southnet's current long distance base would generate an estimated $10 million per year revenue stream for Southnet, according to preliminary analysis.  Southnet is currently operating at approximately $3,100,000.00 per year gross revenues.  The company estimates that combined revenues will net $1,100,000.00 to $1,300,000.00 in profits.
    According to Robert J. Zradicka, president and CEO of Southnet Corporation, "We believe that there are many potential benefits beyond those that could be initially realized by putting the companies together.  Telecom America has demonstrated a strong marketing capability, able to continue generating new accounts at a fast pace.  Their strength in sales aligned with our expertise in switching systems and networks is a natural winning combination for the long term."
    The company cautions that negotiations are still at an early stage and that several important issues must be resolved.  "Both Telecom and Southnet are hopeful that we can accomplish what needs to be done to make this happen," stated Zradicka, "but I do want to exercise a word of caution that no deal is done until it's done.  We both still have considerable due diligence to care for and issues relative to how the two firms actually come together are still being decided.  We hope to have all the major points resolved within the next few weeks and will make those announcements as soon as possible."
    -0-                 11/14/91
    /CONTACT:  Robert J. Zradicka, president and CEO of Southnet Corp., 813-287-2880/ CO:  Southnet Corporation; Telecom America ST:  Florida IN:  TLS SU:  TNM BR-BN -- AT003 -- 4341 11/14/91 10:35 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 14, 1991
Words:334
Previous Article:ALCO STANDARD INCREASES QUARTERLY DIVIDEND
Next Article:HBO & COMPANY DECLARES DIVIDEND
Topics:


Related Articles
SOUTHNET CORPORATION ENTERS FORMAL NEGOTIATIONS WITH TELECOM AMERICA
SOUTHNET BOARD RATIFIES TELECOM AMERICA ACQUISITION AGREEMENT, VOTES TO REINSTATE COMPANY OFFICERS
SOUTHNET AGREES TO ACQUIRE FONE AMERICA
SOUTHNET CORPORATION WITHDRAWS OFFER TO PURCHASE FONE AMERICA
CWA President Says Bell Atlantic-NYNEX Merger is 'Good for the Economy and the Consumers of New York' in Countering State Attorney General's Filing
Telefonica and VTR Announce CTC-VTR Merger is no Longer a Priority
CWA: MCI-WorldCom Merger Remains a Bad Deal

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