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American Telephone & Telegraph (AT&T): T...

Bruner, Robert F.,...

Case

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

Bruner, Robert F.; Innes, Michael J.; Passer, William J.

F-1142 | Published August 22, 1996 | 38 pages Case

Collection: Darden School of Business

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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.