Case Name :      American Telephone & Telegraph (AT&T): The AT&T/McCaw Merger Negotiation

Authors :           Robert F. Bruner, Michael J Innes, William J. Passer

Source :             Darden School of Business

Case ID :           UV2398

Discipline :        Finance

Case Length :    38 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Set in September 1992, this exercise provides teams of students the opportunity to negotiate terms of a merger between AT&T and McCaw Cellular. AT&T, one of the largest U.S. corporations, was the dominant competitor in long-distance telephone communications in the United States. McCaw was the largest competitor in the rapidly growing cellular-telephone communications industry. Prior to the negotiations, AT&T had no position in cellular communications. This case and its companion (F-1143) are designed to allow students to be assigned roles to play. The case may pursue some or all of the following teaching objectives: exercising valuation skills, practicing strategic analysis, exercising bargaining skills, and illustrating practical aspects of mergers and acquisitions.