AT&T unveiled its financing plans for a hostile $6.1 billion takeover offer of NCR Corp., but the computer maker continued its verbal battle against the telephone giant's bid.
American Telephone & Telegraph Co. said Thursday that Chemical Bank would lead a group of financial institutions that would provide a $6 billion line of credit for the takeover. The credit line also would back up short-term notes that the phone company plans to sell to investors to help fund the takeover.
AT&T also said it plans to fund the takeover in part with some of its cash on hand, which totals more than $800 million.
Speaking at a computer industry symposium in Atlanta, NCR Chairman Charles E. Exley Jr. made a passing reference Thursday to the $90-a-share takeover attempt, saying that in the past few days he has learned more about mergers and acquisitions than he ever wanted to know.
"But nothing will deter us from pursuing our vision of a new era for computing," Exley said, referring to NCR's plans, announced in September, to replace its entire product line with industry-standard machines that use the same microprocessor.
Exley jokingly suggested that American Telephone & Telegraph Co. would be launching a new advertisting campaign with the slogan: "Reach Out and Grab Someone."
Exley has said repeatedly the Dayton, Ohio-based company will fight AT&T's tender offer, which expires Jan. 4. However, NCR has not disclosed how it will battle the bid.
Industry analysts say Exley has few options. The most likely is to find another merger partner that offers more favorable terms than AT&T, or a partner that takes only a minority stake in NCR but still block's AT&T's bid.