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UNITED STATES
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: JANUARY 25, 1999
(Date of earliest event reported)
GTE CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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NEW YORK 1-2755 13-1678633
(STATE OR OTHER JURISDICTION OF (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION)
1255 Corporate Drive, SVC04C08, Irving, Texas 75038
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
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Registrant's telephone number, including area code 972-507-5000
(Former name, former address and former fiscal year,
if changed since last report)
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GTE CORPORATION
FORM 8-K
Item 7. Financial Statements and Exhibits
(a) Financial Statements - None
(b) Pro Forma Financial Information - None
(c) Exhibits
99.1 Press Release issued by GTE Corporation on
January 25, 1999
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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, thereunto duly authorized.
GTE Corporation
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(Registrant)
Date: January 25, 1999 /s/Paul R. Shuell
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Paul R. Shuell
Vice President and Controller
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EXHIBIT INDEX
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Exhibit
Number Description
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99.1 Press Release issued by GTE Corporation on
January 25, 1999
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Exhibit 99.1
Media Contact: Peter Thonis, 972-507-5367, [email protected]
Jan. 25, 1999
SUMMARY: GTE TO OFFER FOR SALE ITS GOVERNMENT SYSTEMS OPERATION.
IRVING, Texas - GTE Corporation said today that it is offering for sale its
Government Systems subsidiary, a long-time leader in defense telecommunications
and Federal information systems. The proposed sale is part of a corporate
program announced in April 1998 that will generate in excess of $3 billion in
after-tax proceeds for the implementation of high-growth strategic initiatives
in GTE's core business operations.
GTE Government Systems, headquartered in Needham, Mass., has 7,000
employees at facilities and field offices in 23 states, the District of
Columbia, and several foreign countries. In 1998, Government Systems had
revenues of $1.4 billion - or about 5 percent of GTE's revenues.
Government Systems specializes in telecommunications, information and
intelligence systems; electronic defense systems; network and systems
integration; tactical and strategic communication systems; and engineering
services, logistic support, and the operation and maintenance of
telecommunication and information systems worldwide. The unit has international
contracts in more than 20 countries.
GTE has retained Bear, Stearns & Co. Inc. to assist in matters
pertaining to the sale.
This proposed sale is part of GTE's previously announced plans to
further sharpen its strategic focus by selling or trading approximately 1.6
million access lines within its domestic telephone operations and divesting its
GTE Airfone subsidiary. It is unrelated to GTE's proposed merger with Bell
Atlantic Corporation.
-more-
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GTE-2
"Government Systems is an excellent performer in its specific
businesses," said GTE Chairman and CEO Charles R. Lee. "However, we must now
focus all our resources on fulfilling our strategic objective, which is to be a
full-service telecommunications company offering one-stop shopping for local
telephone, long distance, Internet access, wireless, video, and other services
in the commercial marketplace, both domestically and internationally."
GTE President Kent Foster described the sale of Government Systems as a
potential "win-win" for GTE and any new owner.
"With the right buyer, both parties would enhance shareholder value by
achieving a strategic fit with better operational and marketing synergy," Foster
said.
Foster also stressed that GTE is looking for a buyer with a strong
commitment to customers and employees. "Government Systems' principal asset is
its employees, their high skill level and their focus on customer needs. That's
a rare combination and a resource both GTE and the acquiring company will want
to preserve," he said.
It is GTE's intent that potential buyers agree to hire all GSC
employees in the same or comparable positions at the same or reasonably
comparable salaries and benefits.
Government Systems grew its business from a small operation designing
and building specialty radios and switches to the billion-dollar market leader
it is today through a series of increasingly large government contracts. Today,
the business is comprised of several hundred major contracts providing return on
investment of more than 30 percent and a backlog of orders totaling about $1.1
billion.
ABOUT GTE
With 1997 revenues of more than $23 billion, GTE is one of the world's largest
telecommunications companies and a leading provider of integrated
telecommunications services. In the United States, GTE provides local service in
28 states and wireless service in 17 states; nationwide long-distance service
and internetworking services ranging from dial-up Internet access for
residential and small business consumers to Web-based applications for Fortune
500 companies; as well as video service in selected markets.
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