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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 and Exchange Act of 1934
Date of Report (Date of earliest event reported) May 16, 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 May 16, 1994, Electronic Data Systems ("EDS") and the
registrant confirmed in a news release that they are engaged in
discussions concerning the possible formation of a strategic
relationship between the two companies. Additional information
concerning the discussions 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 Discussions with EDS
SIGNATURE
Pursuant to the requirements of the Securities and 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/ MICHAEL T. HYDE
Michael T. Hyde
Assistant Secretary
Dated: May 16, 1994
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EXHIBIT INDEX
Exhibit
Number Exhibit
99. News Release Relating to Discussions with EDS
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Exhibit 99
Contacts: Bill White, Sprint 913/624-2226
Tony Good, EDS 214/605-6777
Susan Kraus, Sprint 202/828-7410
For Immediate Release
SPRINT AND EDS CONFIRM DISCUSSIONS ON POSSIBLE MERGER
NEW YORK -- May 16, 1994 -- EDS and Sprint confirmed today
they are engaged in discussions concerning the possible formation
of a strategic relationship between the two companies. Such a
relationship could involve a merger of equals as well as other
types of business ventures or alliances. The parties emphasized
that significant issues, including relative values, remain to be
resolved and there can be no assurances that any transaction will
be agreed upon or consummated.
Both Sprint and EDS said that a strategic relationship would
position the companies to take advantage of significant business
and consumer opportunities created by the convergence of
computing, communications and services.
An alliance between the two companies would combine the
global leader of information technology with the owner of one of
the world's most advanced communications infrastructures. If
combined, Sprint and EDS would have over $20 billion in annual
revenues, significant presence and experience in major vertical
market segments and would serve a full spectrum of customers,
spanning individual consumers, businesses and governments.
"We have an opportunity to create a single source for
products and services to meet the converging information and
communications needs of customers," said Messrs. Les Alberthal,
chairman and chief executive officer of EDS, and William T. Esrey,
chairman and chief executive officer of Sprint. "Our
complementary strengths would enable us to capitalize on current
market opportunities, and create new opportunities, as our
industries continue to converge. A strong alliance would create
tangible benefits for our customers, shareholders and employees in
our rapidly changing environment," said Messrs. Alberthal and
Esrey.
Said Mr. Alberthal: "We view Sprint's strong brand identity,
sophisticated network and presence across a full spectrum of
communications markets as providing us with powerful increased
capabilities to offer our customers. In addition, Sprint's
connection with the consumer marketplace would offer EDS an
attractive path for the future development of products and
services tailored to the individual."
-more-
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Sprint and EDS Confirm Discussions on Possible Merger
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Mr. Esrey stated: "A strategic alliance with EDS would allow
Sprint to further enhance its already strong position in the
business marketplace and enable it to offer even greater and more
sophisticated information technology features."
Both companies have proven track records in managing rapid
growth. Sprint's overall revenues have grown from $2.9 billion to
$11.4 billion in 10 years, with its long distance business growing
from less than $225 million to $6 billion over the same time. EDS
has grown from $900 million in business to over $8 billion in 10
years.
EDS is currently a wholly owned subsidiary of General Motors
and any merger between EDS and Sprint could not occur unless
General Motors had previously divested its ownership of EDS. In
an announcement today, General Motors indicated its willingness,
under certain conditions (including completion of its previously
announced contribution of Class E stock to its pension fund) and
subject to shareholder approval, to consider a tax-free spin-off
of EDS to the holders of GM's Class E stock, which would create an
independent EDS owned by former Class E shareholders. In addition
to the spin-off of EDS, a merger of equals involving EDS and
Sprint would be subject to numerous other conditions, including
approval by both companies' boards of directors, approval by EDS'
post-spin-off shareholders and the shareholders of Sprint, and
various governmental and other approvals.
Should EDS become an independent company, General Motors and
EDS plan to enter into a new, 10-year master agreement, with
options for renewal, under which EDS would continue to provide the
same services for General Motors that it does today.
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 6.2
million subscriber lines in 19 states, and cellular operations
that serve 42 metropolitan markets and more than 50 rural service
areas.
EDS has operations in more than 30 countries, employs 70,000
and is the leader in applying information technology to meet the
needs of businesses and governments around the world. Class E
stock is a common stock of General Motors, traded under the symbol
GME. EDS reported revenues of $8.6 billion in 1993.
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Additional Contact: Toni Simonetti, General Motors Corp. 212/418-6380
