NEW YORK-Potential investors in BellSouth Corp. may soon be able to buy its common stock directly from the company under a new plan the Atlanta-based telecommunications company announced Feb. 18.
BellSouth, a $19 billion communications giant, said the “plain English” prospectus it has developed is a first for a corporation of its size.
The company has submitted its proposed offering statement to the Securities and Exchange Commission for consideration under a pilot program of the SEC.
“More and more individual investors are beginning to manage their own portfolios, (and) this direct purchase plan is designed with them in mind,” said Ronald M. Dykes, chief financial officer of BellSouth. “Our new plan offers a low-cost, convenient way to purchase shares of BellSouth stock, and we’re describing the offer in everyday language.”
First-time investors in the company can purchase stock directly from BellSouth with an initial investment of at least $500, including a $10 enrollment fee. Current participants in BellSouth’s dividend reinvestment program will be enrolled automatically in the new plan at no cost.
BellSouth provides wireline and wireless telecommunications, directory advertising and publishing, video, Internet and information services to more than 27 million customers in 18 countries.
At the end of 1996, BellSouth said it had 3.6 million cellular customers in the United States, and 1.24 million cellular customers in 11 international markets.
