06.01.2000Corporate

Bell Atlantic and GTE Declare Pro Rata Dividends In Preparation for Their Merger


Bell Atlantic and GTE Declare Pro Rata Dividends In Preparation for Their Merger


June 1, 2000





Media
contact:

Susan Kraus, Bell Atlantic,
212-395-2355


Peter Thonis, GTE,
972-507-5367


NEW YORK and IRVING, Texas - The boards of directors of Bell Atlantic Corp. (NYSE:BEL) and GTE Corp. (NYSE:GTE) acted today in accordance with their merger agreement to ensure that the timing of the Bell Atlantic-GTE merger will not adversely affect dividend payments to their shareowners.

The boards' actions coordinate their companies' dividend schedules, including record dates and payment dates, and align them with the anticipated schedule of the post-merger company. At the same time, the boards' actions ensure that their companies' respective shareowners will receive a dividend at an appropriate rate until the merger takes effect.

The boards' actions also anticipate that once the merger is effective, the board of Verizon Communications, as the post-merger company will be known, will take appropriate action as well.

The Bell Atlantic and GTE boards acted as follows:

Bell Atlantic Dividend

Bell Atlantic's next dividend period customarily runs from April 11 to a record date of July 10, with an Aug. 1 payable date. However, the companies target completion of the merger before July 10.

If that occurs, Bell Atlantic shareowners can anticipate receiving two separate pro rata dividends covering the customary dividend period that will provide them with the equivalent of $.385 per share, the current Bell Atlantic quarterly dividend:

  • The first, declared today by the Bell Atlantic board, will be paid at the rate of $.00423077 per share per day, for the period from April 11 through the day before the effective date of the merger. (This per-day rate, applied to a full 91-day dividend period, equals $.385 per share.) The pro rata dividend will be payable to shareowners of record on the business day before the effective date of the merger, and will be payable within 30 days after the effective date of the merger.
  • The second, it is anticipated, will be declared at $.00423077 per share per day by the Verizon Communications board for the period starting on the effective date of the merger through July 10 to Verizon shareowners of record on July 10.

If the merger is not completed on or before July 10, Bell Atlantic will pay the dividend of $.385 per share on Aug. 1 to its shareowners of record at the close of business on July 10.

Bell Atlantic has approximately 1.6 million shareowners and 1.55 billion shares of common stock outstanding.

GTE Dividend

GTE's most recent declared dividend of $.47 per share will be payable on July 1 to shareowners of record on May 22. GTE's next dividend period runs from May 23 through Aug. 21.

If the merger is completed on or before July 10, GTE shareowners also can anticipate receiving two separate pro rata dividends:

  • The first, declared today by the GTE board, will be paid at the rate of $.00516484 per share per day, for the period from May 23 through the day before the effective date of the merger. (This per-day rate, applied to a full 91-day dividend period, equals GTE's current quarterly dividend of $.47 per share.) This pro rata dividend will be payable to shareowners of record on the business day before the effective date of the merger, and will be payable within 30 days after the effective date of the merger.
  • The second is the dividend that, it is anticipated, will be declared by the Verizon Communications board. As described above, this pro rata dividend of $.00423077 per share per day will be declared for the period starting on the effective date of the merger through July 10, for Verizon shareowners of record on July 10.

    GTE shareowners will be Verizon shareowners when the merger is effective. They will receive 1.22 Verizon shares for every GTE share. When the second per-day rate of $.00423077 per share is multiplied by this exchange ratio, over a full 91-day dividend period it equals $.47 per share, the current GTE dividend.

If the merger is not completed on or before July 10, then GTE will continue to accrue a dividend at the rate of $.00516484 per share per day until the merger is completed.

The GTE board of directors also declared today that if completion of the merger should extend past GTE's next dividend record date of Aug. 21, the dividend of $.47 per share will be payable Oct. 1 to shareowners of record on Aug. 21.

GTE has approximately 1.1 million shareowners and 967 million shares of common stock outstanding.

Bell Atlantic (www.bellatlantic.com) is at the forefront of the new communications and information industry. With more than 44 million telephone access lines and more than 20 million wireless customers worldwide, Bell Atlantic companies are premier providers of advanced wireline voice and data services, market leaders in wireless services and the world's largest publishers of directory information. Bell Atlantic companies are also among the world's largest investors in high-growth global communications markets, with operations and investments in 23 countries.

With 1999 revenue of more than $25 billion, GTE (www.gte.com) is a leading telecommunications provider with one of the industry's broadest arrays of products and services. In the United States, GTE provides local service in 28 states and wireless service in 18 states, as well as nationwide long-distance, directory, and internetworking services ranging from dial-up Internet access for residential and small-business consumers to Web-based applications for Fortune 500 companies. Outside the United States, the company serves customers on five continents.