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as board weighs offer

ACC Corp. shares rise
as board weighs offer

Investors reacted favorably today to word from ACC Corp.’s board of directors that it is reviewing an unsolicited merger proposal from Tel-Save Holdings Inc. as well as other options.
In early afternoon trading, ACC shares were at $45.13, up $1.38 or 3 percent.
Tel-Save has proposed acquiring all of ACC’s shares in exchange for Tel-Save shares valued at $50 per ACC share.
“The board of directors of ACC noted that there is merit to the proposal but there are a number of important elements of the Tel-Save proposal which require further clarification,” a statement from ACC said.
It also noted the board had instructed management and its adviser, Morgan Stanley Dean Witter Discover & Co, to meet with Tel-Save in order to obtain a “better understanding” of the proposal.
“The board is committed to and intends to expeditiously explore fully Tel-Save’s proposal and all the available strategies for delivering value to our shareholders,” the statement said.
Responding to the ACC statement, Tel-Save said it was “eagerly looking forward” to beginning friendly negotiations with the company.
“The synergies of these two companies are extremely compelling and the potential combination should create the most attractive opportunities for our mutual shareholders,” said Tel-Save chairman and CEO Daniel Borislow.
Meanwhile, ACC’s board amended the company’s shareholder-rights plan, reducing the threshold by which the rights become exercisable to 7.5 percent from 15 percent.
“The amendment,” ACC said, “which will remain in effect through December 31, 1997, is intended to prevent any potential acquirer from accumulating a sufficient number of ACC common shares to prevent another party from engaging in a pooling-of-interests transaction with the company.”
In its press release, Tel-Save said the revised threshold in the rights plan was a “smart move.”

ACC Corp. shares rise
as board weighs offer

Investors reacted favorably today to word from ACC Corp.’s board of directors that it is reviewing an unsolicited merger proposal from Tel-Save Holdings Inc. as well as other options.
In early afternoon trading, ACC shares were at $45.13, up $1.38 or 3 percent.
Tel-Save has proposed acquiring all of ACC’s shares in exchange for Tel-Save shares valued at $50 per ACC share.

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