SBC offers to buy remaining shares of Prodigy

SBC Communications Inc. announced plans Friday to purchase all the outstanding shares of Internet service provider (ISP) Prodigy Communications LP.

SBC currently hold a 42 percent stake in Prodigy and has made a tender offer to acquire the remaining balance of Prodigy shares at US$5.45 per share. Prodigy's stock closed at $3.54 Friday, meaning SBC's offer is a 54 percent premium over Prodigy's price at the end of trading. SBC expects to commence the tender offer possibly by the first week in October, according to a statement.

SBC owns a number of subsidiaries, including SBC Southwestern Bell, SBC Ameritech, SBC Pacific Bell, and SBC Nevada Bell.

Prodigy lays claim to more than 3.3 million consumer and small-business subscribers throughout the U.S. and Mexico. The company gained 700,000 users by joining its operations with SBC's consumer and small-business Internet access operations in June of 2000. It was at that time that SBC took the 42 percent stake in the ISP, according to a statement.

Prodigy serves as the exclusive ISP and portal for SBC's DSL (digital subscriber line) and dial-up customers served by the company's regional subsidiaries.

SBC, in San Antonio, Texas, can be reached at +1-210-821-4105 or http://www.sbc.com/.

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