SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: December 18, 1997
AT&T CORP.
A New York Commission File I.R.S. Employer
Corporation No. 1-1105 No. 13-4924710
32 Avenue of the Americas, New York, New York 10013-2412
Telephone Number (212) 387-5400
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Form 8-K
AT&T Corp.
December 18, 1997
Item 2. Acquisition or Disposition of Assets.
See Exhibit 99 to this Form 8-K.
Item 7. Financial Statements and Exhibits.
(b) Pro Forma Financial Information.
Please see the Pro Forma Financial Information filed under Item 5
to AT&T Corp.'s Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 1997.
(c) Exhibits.
Exhibit 99 AT&T Corp. Press Release issued December 18, 1997.
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Form 8-K
AT&T Corp.
December 18, 1997
SIGNATURES
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.
AT&T CORP.
/s/ Marilyn J. Wasser
--------------------------------
By: Marilyn J. Wasser
Vice President and Secretary
December 18, 1997
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EXHIBIT INDEX
Exhibit
Number
99 AT&T Corp. Press Release issued December 18, 1997
Exhibit 99
FOR IMMEDIATE RELEASE
December 18, 1997
Citibank Acquires AT&T Universal Card Services,
Establishes Cobranding Agreement with AT&T
New York -- Citibank and AT&T Corp. announced today that Citibank has agreed to
purchase AT&T Universal Card Services for $3.5 billion in cash. In addition, the
companies signed a 10-year cobranding and joint marketing agreement.
The acquisition, subject to regulatory approval, has been approved by the boards
of both companies, and is expected to close by the 1998 second quarter.
With the acquisition of the AT&T card business, which was launched in 1990 and
is now among the top 10 U.S. card issuers, Citibank strengthens its position as
the leading credit card issuer, adding $15 billion in customer receivables and
13.6 million accounts to its own U.S. totals of $46 billion of card receivables
and 24.9 million accounts, for a combined $61 billion of receivables and 38.5
million card accounts in the United States.
AT&T had announced its intention to sell the credit card business as part of its
aggressive effort to ensure that AT&T's portfolio includes only businesses that
are strategically central to its core communications services operation. AT&T
Universal Card Services is headquartered in Jacksonville, Florida, and has
facilities in Salt Lake City, Utah, and Columbus, Georgia. Upon completion of
the transaction, these offices and the company's 4,000 employees will become
part of Citibank.
Citibank's Alvaro de Souza, Executive Vice President, North America Consumer
Business, said: "AT&T, a world recognized brand with extraordinarily loyal
customers, in combination with our own strong Citibank brand will be a
tremendous force in delivering value to customers."
Citibank's strategy, Mr. de Souza said, is to aggressively expand its consumer
businesses both through its own internally generated growth and through
strategic partnerships and alliances with other global brands. "In the past year
we have formed alliances with a number of companies to broaden our reach in
serving consumers in the U.S. market and abroad. As the card industry continues
to consolidate, cobranding with exceptionally strong global branded companies
will differentiate Citibank's offerings from those of its competitors."
"We view this agreement as the marriage of two powerful brands that will offer
tremendous benefits for all our customers," said Dan Somers, Chief Financial
Officer of AT&T. "The cobranding marketing agreement gives our company
continuing participation in the values we have built into our card, while the
sale enables us to focus resources in our core operations. Citibank's reputation
for customer service, its position as a leading credit card issuer and its
global reach were critical factors in our selection of Citibank for the joint
marketing relationship."
Citibank said there will be no immediate changes to the Universal card or its
operations. Universal's management team, many of whom are former Citibankers,
will remain, enabling the combined operations to benefit from "best of class"
elements each can offer to the other.
Customers of the Universal card will be provided with uninterrupted service and
can expect to receive the same features and benefits that they now receive from
the card.
Citicorp, the parent company of Citibank, said that it expects to maintain its
Tier 1 capital target of a range between 8.0 and 8.3% and to continue to return
excess capital to stockholders through the repurchase from time to time of its
common shares.
