SBC considering raising Prodigy share offer

SBC Communications said it may increase its offer for the remaining shares of Prodigy Communications after several Prodigy stockholders expressed concern over the $5.45 per share offer SBC made last month.

SBC bid a 54% premium over the closing price of Prodigy on Oct 1, when a depressed market after the World Trade Center tragedy sent the per-share price plummeting. SBC owns a 42 percent stake in Prodigy, which is the carrier's exclusive ISP for DSL service. Most of the remaining shares are controlled by SBC board member and Telmex chairman Carlos Slim Helu, who owns 34 percent directly and 10 percent through Telmex.

A number of Prodigy shareholders have reportedly balked on the offer, including Telmex, pointing out that the shares have gone above the offer price. SBC said it was in talks with a committee consisting of Prodigy board members about possibly upping its initial offer. Prodigy has advised its shareholders to reject any offer until the committee returns with a recommendation. --Kevin Fitchard, staff writer