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Disney Completes Deal With Capital Cities/Abc

Los Angeles Daily News

Capital Cities/ ABC Inc. is no more.

The Burbank, Calif.-based Walt Disney Co. completed the $19 billion acquisition of the broadcast and publishing concern Friday. Now all that’s left in the deal to create the nation’s largest media concern is for shareholders to decide whether they want cash, stock or both in exchange for their Capital Cities holdings.

“There is no longer a Capital Cities/ABC trading on the New York Stock Exchange,” Disney spokesman John Dreyer said Friday, the last day of trading for Capital Cities stock.

Capital Cities shares closed at 127-1/2 Friday, down 1, while Disney stock fell 7/8 to end at 62-3/4. The new company holds the Disney name and will trade Monday under the company’s stock symbol of DIS.

Capital Cities shares now are worth $127 in either cash, Disney stock or a combination of both. Shareholders will be mailed forms next week asking them whether they want one share of Disney stock plus $65 cash, all Disney stock or all cash, Dreyer said. The deadline to return the forms is March 7.

If too many shareholders seek all cash or all stock, Disney reserves the right to balance out the distribution, Dreyer said. If Disney stock rises significantly, shareholders may opt for more shares or more cash if it falls.

Disney plans to issue 155 million shares of new stock for Capital Cities shareholders. There are 154 million shares of Capital Cities stock outstanding and 523 million shares of Disney stock.

The two firms announced their plans to merge July 31, combining Disney, which owns film and animation studios, theme parks, sports franchises and a computer software business with Capital Cities, which owns the ABC Television Network, ESPN Sports Network, the Arts and Entertainment Network and several radio and publishing entities.

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