Western Union Launches Tender Offer: The Newark,...
From Times Staff and Wire Reports
Western Union Launches Tender Offer: The Newark, N.J.-based firm offered holders of its junk bond 50 cents on the dollar to avoid a cash crisis and possible bankruptcy court proceedings. Under the latest offer, Western Union, which helped pioneer communications in the United States, said it would pay $500 cash per $1,000 in principal amount on between $250 million and $350 million of outstanding 19 1/4% and 16% junk bonds. The cash required to finance the latest offer would be obtained from the net proceeds of Western Union’s pending sale of most of its Business Services unit to American Telephone & Telegraph Co.
