P.M. BRIEFING : GTE-Contel Merger Approved
Contel Corp. said today that its shareholders overwhelmingly approved a $6.2-billion merger with GTE Corp. that would create the nation’s second-largest mobile-cellular telephone company.
GTE shareholders met in Stamford, Conn., to approve the merger. Remaining regulatory hurdles are expected to delay completion of the merger until the second quarter of 1991.
The combined company would be second in size to McCaw Cellular Communications Inc.
“Its a logical, natural, normal merger that should benefit both companies,” said Herschel Schostek, a Silver Spring, Md., telecommunications industry consultant. “GTE brings capital. Contel brings a nice operational system.”
The deal calls for shareholders in Atlanta-based Contel to receive 1.27 shares of GTE common stock for each share of Contel common stock. Contel would become a wholly owned subsidiary of GTE, based in Stamford.
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