AT&T AND METRONET BECOME ONE
By Adnews Staff
Toronto-based AT&T Canada and MetroNet Communications have announced plans to merge the two companies together in a transaction valued at approximately $7 billion. The merger of AT&T and MetroNet will create the telecommunications company AT&T Canada Corp. The merger combines AT&T's customer base and long-distance network with MetroNet's telecommunications facilities and data networks. The terms of the agreement outline a multi-stage transaction, where MetroNet shareholders will indirectly own 69% of the merged company and AT&T indirectly owning 31%. Jim Meenan will serve as vice chairman and chief executive officer of the new company. Craig Young will serve as vice chairman and president. If MetroNet shareholders approve the transaction, which they will vote on at a shareholders meeting in May, the merger of the companies is expected to be completed by the end of the second quarter of 1999. Advertising for MetroNet is done by Capital C Communications of Toronto.