Prodigy tells shareholders to wait on SBC offer

Prodigy Communications’ board of directors told shareholders to postpone deciding whether to accept SBC Communications’ tender offer to buy the ISP.

The board said it has created an independent advisory committee composed of board members with no affiliation with SBC. The primary shareholder affected by the deal is SBC board member and Telmex Chairman, Carlos Slim Helu.

The advisory committee will recommend to the company whether SBC’s offer should be accepted. In a statement issued Tuesday, Prodigy urged its shareholders not to take any action until the committee makes its recommendation on Oct. 16.

SBC, which now owns 42% of the ISP, has offered $5.45 per share for all remaining shares of Prodigy. The price represents a 54% premium over the closing stock price the day the offer was made last month.

--Kevin Fitchard, staff writer