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GTE chairman pushes bid
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October 17, 1997: 9:06 p.m. ET
Lee says deal part of growth strategy; denies takeover rumors drove bid
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NEW YORK (CNNfn) - GTE Corp. Chairman and CEO Charles Lee said Friday, "all the environment was right" for his company's $28 billion, all-cash surprise bid for MCI Communications Corp. earlier this week.
"We have been for years and years looking at different ways to grow and become more dynamic in the marketplace," the chairman of the telecommunications company told CNN on "Moneyline with Lou Dobbs."
A merger between GTE and MCI would offer a package of products that could be combined and offered to its customers, said Lee. He called the deal "a pro-competitive arrangement" and the bid "a fair and full value" for the MCI shareholder.
Lee denied his company's bid was motivated by rumors that GTE itself may be the object of a takeover. "Our company has a long-standing history of being independent," said Lee. "We launched ourselves this year into a growth strategy."
Earlier this year, GTE announced a thrust into the data communications business. GTE acquired Boston-based BBN, the original founder of the Internet, launched a joint venture with Cisco Systems, and purchased a fiber optic network from Qwest . Lee called these moves "complementary" with GTE's growth strategy.
Shares of GTE (GTE) closed the day up 1-5/16 at 46-1/6 on the New York Stock Exchange, but the company's stock has fallen more than $4 a share since its surprise bid for MCI. This movement has been in line with GTE's expectations, said Lee. "When you have a big announcement…, you expect the market to take a while to digest it." 
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