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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 14, 1994
SPRINT CORPORATION
__________________
(Exact name of registrant as specified in its charter)
Kansas 1-4721 48-0457967
______ ______ __________
(State of (Commission (IRS Employer
Incorporation) File Number) Identification
Number)
2330 Shawnee Mission Parkway, Westwood, Kansas 66205
____________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (913) 624-3000
P. O. Box 11315, Kansas City, Missouri 64112
____________________________________________
(Mailing address of principal executive offices)
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Item 5. Other Events
On June 14, 1994, the registrant announced in a press
release that it had entered into a Memorandum of Understanding
(the "MOU") with Deutsche Telekom and France Telecom to form a
global partnership which will offer telecommunications services
to business, consumer and carrier markets worldwide. The MOU
provides that Deutsche Telekom and France Telecom together will
purchase 42.9 million shares of a new class of the registrant's
stock at a price of $47.225 per share. Deutsche Telekom and
France Telecom will purchase an additional 42.9 million shares of
a new class of registrant's stock at a price of $51 per share two
years after the initial acquisition. As part of the transaction,
Deutsche Telekom and France Telecom will be entitled to
representation on the registrant's board, such representation to
be based on their actual percentage ownership interest, with a
minimum of two directors serving on the registrant's board so
long as the two companies own at least 10 percent of the
outstanding common stock of the registrant, subject to the
approval of the New York Stock Exchange. The formation of the
partnership and the acquisition of registrant's stock are subject
to conditions, including the negotiation and execution of
definitive agreements, approval by the registrant's board of
directors and its shareholders, approval by the governing bodies
of Deutsche Telekom and France Telecom and government and
regulatory approvals. Additional information concerning the
formation of the partnership and the acquisition of stock is
contained in the news release, a copy of which is filed as
Exhibit 99 hereto and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99. News Release Relating to the Execution of a
Memorandum of Understanding with France Telecom
and Deutsche Telekom
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
SPRINT CORPORATION
By /s/ DON A. JENSEN
Don A. Jensen
Secretary
Dated: June 14, 1994
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<TABLE>
EXHIBIT INDEX
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Exhibit
Number Exhibit
<S> <C>
99. News Release Relating to the Execution of a Memorandum
of Understanding with France Telecom and Deutsche
Telekom
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Exhibit 99
Contacts: Sue Kraus, 212-554-2420; after 6/14, 202-828-7410
Bill White, 212-554-2420; after 6/14, 913-624-2226
For Immediate Release
SPRINT, DEUTSCHE TELEKOM, FRANCE TELECOM
JOIN FORCES TO FORM A GLOBAL STRATEGIC ALLIANCE
-- Sprint, Deutsche Telekom and France Telecom to
Create a Global Partnership --
-- Deutsche Telekom and France Telecom to Invest More Than $4
Billion in Sprint By Acquiring a 20-Percent Stake in Two Steps --
KANSAS CITY, Mo., June 14, 1994 -- Sprint, Deutsche Telekom
and France Telecom today announced plans, based on a Memorandum of
Understanding, to form a global partnership. This partnership
between Europe's two leading telecommunications companies and the
provider of the United States' most technologically advanced
telecommunications network will offer seamless, global
telecommunications services to business, consumer and carrier
markets worldwide.
Subject to relevant regulatory environments, these services
will include:
o Global international data, voice and video business
services for multinational and large business customers,
as well as for the burgeoning number of small companies
with international communications needs.
o International services for consumers, initially based on
card services for travelers.
o "Carriers' carrier" services, providing international
transport services for other carriers.
Over time, the services will expand to address the changing
dynamics of global, regional and national markets. The
partnership plans to develop national networks to provide long
distance services in other countries as required by customers.
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Sprint, Deutsche Telekom, France Telecom Join Forces To Form
A Global Strategic Alliance
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As part of the agreement, Deutsche Telekom and France Telecom
will invest, in two steps, a total of approximately $4.2 billion
in Sprint over two years, become shareholders of the company and
hold a 20-percent equity investment in the company. "This
substantial investment will enable Sprint to further leverage its
technological and innovative superiority in the U.S.," said
William T. Esrey, chairman and chief executive officer of Sprint.
"We are delighted to have Deutsche Telekom and France Telecom as
investors in our company."
The services of the global partnership will be offered
throughout the world by regional operating groups, and in the
United States, France and Germany by the home-country partner.
The partnership will be directed by a Global Partnership Board
which will determine strategic direction and oversee the
operations of three operating entities. Two of these will be
regional operating groups, one focused on Western and Eastern
Europe and the other on the rest of the world. The partnership
will also have a Global Backbone Network operating group, which
will establish a transmission network interconnecting various
regional hubs and support the provision of the global
partnership's services.
The intention of the three partners is to combine planning
for global network facilities to the extent allowed by regulation.
Existing correspondent bilateral relationships will remain in
place.
The three partners will have equal votes on the Global
Partnership Board. The Global Backbone Network operating group
and the operating group serving the "rest of the world" will each
be owned 50 percent by Sprint and 50 percent by Deutsche Telekom
and France Telecom. The operating group serving Western and
Eastern Europe will be one-third owned by Sprint and two-thirds
owned by Deutsche Telekom and France Telecom. Deutsche Telekom
and France Telecom's interest in the regional operating groups and
the Global Backbone Network operating group will be managed by
their recently announced joint venture, referred to as Atlas.
The partnership anticipates merging most of the international
assets of the partners within the agreed scope of the
partnership's services, to pursue telecommunications opportunities
worldwide. It is also anticipated that the majority of the assets
of Sprint International will be contributed to the partnership.
Under terms of the agreement, France Telecom and Deutsche
Telekom collectively will acquire a 20-percent ownership stake in
Sprint. It is anticipated that Deutsche Telekom and France
Telecom together will purchase from Sprint approximately 42.9
million shares of a new class of Sprint stock at a price of
$47.225 per share. France Telecom and Deutsche Telekom will
purchase an additional 42.9 million shares of a new class of
Sprint stock at a price of $51 per share two years after the date
of the initial acquisition.
As part of the transaction, France Telecom and Deutsche
Telekom will be entitled to representation on the 15-member Sprint
board. The representation will be based on their actual
percentage ownership interest, with a minimum of two directors as
long as the two companies own at least 10 percent of the
outstanding common stock of Sprint, subject to New York Stock
Exchange approval.
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Sprint, Deutsche Telekom, France Telecom Join Forces To Form
A Global Strategic Alliance
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A Memorandum of Understanding has been signed by William
Esrey, chairman and chief executive officer of Sprint; Helmut
Ricke, chairman of the management board of Deutsche Telekom; and
Marcel Roulet, chairman of France Telecom. Both the formation of
the global partnership and the acquisition of stock by Deutsche
Telekom and France Telecom are subject to conditions, including
the negotiation and execution of definitive agreements, approval
by the board of directors of Sprint and its shareholders, approval
by the governing bodies of Deutsche Telekom and France Telecom,
and government and regulatory approvals.
The partnership may seek to add partners from Asia and the
Pacific to increase its ability to serve customers in those
regions, as well as national partners to strengthen service
offerings in specific countries. The partners believe there are
opportunities to work together in other advanced markets in the
U.S. and elsewhere.
"The international telecommunications industry is
experiencing dramatic positive change," said Esrey. "Our
partnership with Europe's two largest telecommunications companies
will enable us to provide leading communications services to a
wide range of customers.
Esrey said that business, consumers and other
telecommunications providers are demanding service improvements
that can best be provided by a global carrier. "Quite frankly,
the needs of the marketplace today are considerably ahead of the
global industry's ability to deliver. This partnership will
create the single-source provider with global account
responsibility that the marketplace is looking for," he added.
The countries represented by the partnership are home to
almost half of the world's multinational companies, giving the
partnership a strong base from which to extend these services
worldwide, he noted.
In announcing the agreement in Bonn, Helmut Ricke said, "In a
nutshell, Sprint, as a telecommunications enterprise with
extraordinary technological know-how and with the potential of a
fully digitized network, is the ideal partner for implementing our
strategic goals."
In Paris, Marcel Roulet said Sprint's significant base of
multinational business customers and strong brand recognition in
the U.S. were key factors leading to the partnership agreement.
"The partnership will be a global leader, combining the
considerable financial, technological and marketing strengths of
our three companies," Roulet said. "The creation of the global
partnership, as well as Deutsche Telekom and France Telecom's
joint investment in Sprint, will considerably strengthen the
French-German partnership. This represents a significant step
toward a global extension of this partnership."
The partners expect to sign a definitive agreement around
year's end and have executed an exclusivity agreement.
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Sprint, Deutsche Telekom, France Telecom Join Forces To Form
A Global Strategic Alliance
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Sprint is a diversified international telecommunications
company with more than $11 billion in annual revenues and the
United States' only nationwide all-digital, fiber-optic network.
Its divisions provide global long distance voice, data and video
products and services, local telephone services to more than 6
million subscriber lines in 19 states, and cellular operations
that serve 42 metropolitan markets and more than 50 rural service
areas.
Additional Contacts: Steve Dykes, Sprint Corporation, 202-828-7435
Klaus Czerwinski, Deutsche Telekom, 49-228-181-9430
Bruno Janet, France Telecom, 33-1-44-44-93-93
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SK/CS
061494
