Expected NCR Profit Drop May Hurt Its Takeover Fight
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NEW YORK — NCR Corp. is expected to report disappointing first-quarter earnings next week, industry analysts said Monday, putting added pressure on the computer maker to negotiate an end to its takeover fight with American Telephone & Telegraph Co.
While not commenting directly on the expected figures, NCR Chairman Charles E. Exley Jr. admitted Monday that a poorer-than-anticipated profit could undermine his bargaining position with the telephone company and his own shareholders.
In an attempt to decrease the attractiveness of AT&T;’s takeover offer, Exley has told shareholders that NCR can boost its stock price above AT&T;’s offering price through increased earnings in coming quarters.
“We have to show earnings power” to justify this position, Exley said in a telephone interview.
Exley did say that if his company expected earnings to be sharply lower than estimates by stock analysts, it would have said so in advance.
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