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) May 3, 1999
SPRINT CORPORATION
(Exact name of Registrant as specified in its charter)
Kansas 0-4721 48-0457967
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
2330 Shawnee Mission Parkway, Westwood, Kansas 66205
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (913) 624-3000
(Former name or former address, if changed since last report)
P. O. Box 11315, Kansas City, Missouri 64112
(Mailing address of principal executive offices)
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Item 5. Other Events
Acquisitions Announced
On May 3, 1999, Sprint Corporation ("Sprint") announced that it had
entered into a definitive agreement to acquire Videotron USA, the
wireless broadband subsidiary of Le Groupe Videotron Ltee, and to
purchase Transworld Telecommunications Inc. A copy of the news release
is filed as Exhibit 99 to this report and is incorporated in this
report by reference.
Previously, Sprint had announced that it had agreed to
acquire People's Choice TV Corp. ("PCTV"), a provider of wireless
broadband services in several major markets in the midwest and
southwest, and American Telecasting, Inc. ("ATI"), a provider of
wireless broadband services in several major markets in the north
central and western United States. The transactions are subject
to customary conditions, including regulatory approval and
approval by PCTV and ATI stockholders.
PCTV common stockholders will receive an aggregate of $129.2
million in cash in the PCTV merger, not including amounts to be
paid if outstanding options and warrants are exercised prior to
closing. Sprint also acquired or entered into options to acquire
convertible preferred stock of PCTV from certain stockholders for
an aggregate of $23.3 million. PCTV had an aggregate of $287
million in indebtedness outstanding as of December 31, 1998
according to its Annual Report on Form 10-K for the 1998 fiscal
year.
ATI common stockholders will receive an aggregate of $167.8
million in cash in the ATI merger, not including amounts to be
paid if outstanding options and warrants are exercised prior to
closing. ATI had an aggregate of $240 million of indebtedness
outstanding as of December 31, 1998 according to its Annual
Report on Form 10-K for the 1998 fiscal year.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99 News Release Relating to Acquisition of Videotron
USA and Transworld Telecommunications Inc.
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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, hereunto duly authorized.
SPRINT CORPORATION
Date: May 3, 1999 By: /s/ Michael T. Hyde
Michael T. Hyde
Assistant Secretary
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EXHIBIT INDEX
Exhibit
Number Description Page
99 News Release Relating to Acquisition of Videotron USA
and Transworld Telecommunications Inc.
Exhibit 99
Contact:
Russ Robinson, Sprint, (O) 913-624-3417
E-mail: [email protected]
For Immediate Release
SPRINT AGREES TO ACQUIRE VIDEOTRON USA AND
TRANSWORLD TELECOMMUNICATIONS INC.
Transaction will provide access to 6.4 million households in the
San Francisco Bay and Tampa Bay areas
KANSAS CITY, Mo., May 3, 1999 - Sprint today announced it
has entered into a definitive agreement to acquire Videotron USA,
the wireless broadband subsidiary of Le Groupe Videotron Ltee., a
Montreal-based company, and to purchase Transworld
Telecommunications Inc., of San Anselmo, Calif.
The transactions will give Sprint high-speed wireless access
to almost 6.4 million homes in San Francisco, San Jose, and
Oakland, Calif.; Tampa, Fla.; Seattle and Spokane, Wash.; and
Greenville, S.C. The purchase offers consumers and small
businesses another option to access the Sprint Integrated On-
Demand Network, Sprint ION. Together with recently announced
agreements with People's Choice Television and American
Telecasting Inc., Sprint will be able to provide wireless access
to Sprint ION broadband services to about 24.2 million households
across the country. In addition, Sprint is rolling out Digital
Subscriber Line service in 35 major markets covering 34 million
households, as another option to access Sprint ION.
Sprint agreed to purchase 100 percent of the capital stock
of Videotron USA, a subsidiary of Le Groupe Videotron. Videotron
USA, through its subsidiaries, owns the wireless licenses serving
the Tampa Bay area and Greenville, S.C. Videotron USA also owns
a majority interest in the licenses for San Francisco, San Jose,
Victorville, and Greely, Calif.; and Seattle and Spokane, Wash.
Sprint agreed to acquire Videotron USA for approximately $180
million. The remaining interest in those licenses is owned by
Transworld Telecommunications Inc. Sprint agreed to purchase
TTI for approximately $30 million. The acquisitions must be
approved by the Federal Communications Commission and the U.S.
Department of Justice. That process is expected to take four to
six months.
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Using wireless services, Sprint can provide multi-megabit
data, voice, Internet and video conferencing services through
Sprint ION, using a small nine-inch antenna mounted on the roof
of the side of a home or small business and pointed toward a
Sprint tower. The transmission's high capacity will allow Sprint
to deliver Sprint ION services without leasing telephone lines
from local telephone companies.
Sprint ION is a new high-capacity, intelligent
communications service that provides simultaneous voice, video,
fax, Internet and data services over a single connection. For
business customers, this means they will no longer be required to
manage numerous complex networks but can rely on a truly
integrated network.
Sprint already has introduced Sprint ION services to large
business markets and services for consumers and small businesses
will roll out in the fourth quarter of this year and through Year
2000. The company has begun installing its own Digital
Subscriber Line (DSL) facilities to provide homes and small
businesses access to Sprint ION.
Sprint is a global communications company - at the forefront
of integrating long distance, local and wireless communications
services, and one of the largest carriers of Internet traffic.
Sprint built and operates the United States' first nationwide all-
digital, fiber-optic network and is a leader in advanced data
communications services. Sprint has $17 billion in annual
revenues and serves more than 17 million business and residential
customers.
