Incomnet to Buy Majority National Telephone Stake

Incomnet Inc. in Woodland Hills said it has agreed to purchase a majority stake in National Telephone & Communications Inc. in Newport Beach for Incomnet stock valued at about $4 million.

Incomnet operates a computerized trading network for the auto parts industry. NTC is a struggling carrier of long-distance communications services. Incomnet earlier this year acquired in excess of 20% of NTC and assumed operating control of the company in an effort to curb its losses, Incomnet President Sam D. Schwartz said.

Under the latest agreement, holders of roughly 50% of NTC’s stock--including NTC Chairman Donald Rackemann--have agreed to exchange their shares for Incomnet stock. They will receive one Incomnet share for every 10 shares of NTC they own.

Schwartz said his company also owns options that, if exercised, would eventually lift Incomnet’s stake in NTC to 90%.