With only a handful of questions, American Telephone & Telegraph Co. today received stockholder endorsement of its takeover of Pacific Telephone and Telegraph Co., a transaction worth more than $370 million at today's stock prices.
More than 98 percent of Pacific's common stockholders approved the AT&T offer. AT&T had owned 91.5 percent of Pacific's common stock and 78.2 percent of the California company's preferred shares.
AT&T's previous control of Pacific's stock assured the tally today, but the action could face other hurdles. The California Public Utilities Commission has been holding hearings on the possible effect of the deal on California rate payers. Pacific officials, however, say the state regulators do not have the legal authority to block the deal, although no opposition to it has surfaced there.
In addition, at least one dissident stockholder has filed a class action suit here against AT&T and Pacific charging that the takeover price is inadequate and the minority shareholders were not adequately represented in the merger negotiations.
The merger plan could be withdrawn by either company if it is not consummated before April 1 and could be terminated if litigation made it "inadvisable or impractical," the companies said.
But Pacific officials deny the charges and say the terms are favorable to the stockholders.