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/.