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.