RealTime IT News

SBC Raising Bid on Prodigy?

SBC Communications Inc. Monday entered into talks with a special committee of Prodigy Communications Corp. to discuss the possibility of raising its bid to acquire the ISP.

On Oct. 2, SBC offered $384 million, or $5.45 a share, for about 70.5 million shares of Prodigy Class A Common Stock, or 58 percent of the company. SBC already owns 42 percent of Prodigy . A number of Prodigy's shareholders said the unsolicited offer was too low, noting that the offer was below Prodigy's current price of about $6.20 a share.

SBC said the special committee has informally suggested a tender price of $6.55.

The telco said it is considering raising its bid to the $6 per share to $6.25 per share ($440.6 million) range.

Prodigy has said its special committee will advise its shareholders whether or not to accept the offer by Oct. 16.