-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JXp8+adkb7Svu6nn9mMPbBXCT7KNmXZpObP/MgOexzHLNo7N5EfENLCxE+xLlSfd S5Q7clUxuKLOEeU1UeYgHw== /in/edgar/work/0000732713-00-000031/0000732713-00-000031.txt : 20001108 0000732713-00-000031.hdr.sgml : 20001108 ACCESSION NUMBER: 0000732713-00-000031 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20001107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BELLSOUTH CORP CENTRAL INDEX KEY: 0000732713 STANDARD INDUSTRIAL CLASSIFICATION: [4813 ] IRS NUMBER: 581533433 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: SEC FILE NUMBER: 001-08607 FILM NUMBER: 754732 BUSINESS ADDRESS: STREET 1: 1155 PEACHTREE ST NE STREET 2: ROOM 15G03 CITY: ATLANTA STATE: GA ZIP: 30309-3610 BUSINESS PHONE: 4042492000 DEFA14A 1 0001.txt EMAIL TO EMPLOYEES RE: QUESTION AND ANSWER SHEET SCHEDULE 14A (RULE 14A-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934 Filed by the Registrant [X] Filed by a Party other than the Registrant [ ] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [ ] Definitive Proxy Statement [X] Definitive Additional Materials [ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12 BellSouth Corporation - -------------------------------------------------------------------------------- (Name of Registrant as Specified In Its Charter) - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): [X] No fee required. [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: [ ] Fee paid previously with preliminary materials: [ ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed: The following question and answer form will be sent to BellSouth employees. The document addresses questions on BellSouth's proposed Latin America tracking stock. BellSouth Employee Questions and Answers Regarding Latin America Group Tracking Stock Q1. Will employees be able to participate in the public offering of Latin America group tracking stock? A1. BellSouth is currently in the "quiet period" required by the SEC prior to issuance of the prospectus for the public offering. Therefore, we cannot answer this question at this time. However, other companies involved in public offerings have, in some cases, given their employees the opportunity to purchase stock. BellSouth is reviewing the programs sponsored by these companies prior to finalizing an approach for BellSouth employees. We will share more information when it is permissible under SEC rules. Q2. What is going to happen to my BellSouth common stock in the 401(k) Plan? A2. When the Latin America group stock is first issued in the public offering, all BellSouth common stock, including the stock in the in the 401(k) Plan, will automatically convert to BLS group stock. No other changes will occur to your BellSouth stock in the 401(k) plan at that point. However, as described in the proxy statement, BellSouth plans to distribute Latin America group stock to holders of BLS group stock six to 12 months after the public offering. Therefore, employees who hold shares of BLS group stock through the company's 401(k) Plan (as well as other company-sponsored plans) will receive an allocation of Latin America group stock at the time of the distribution. Q3. How will the distribution of the Latin America group stock to BLS group shareholders impact the value of my existing BellSouth investment in the 401(k) Plan? A3. o Your current investment in BellSouth through the 401(k) Plan is in BellSouth common stock. The value of this investment fluctuates based upon changes in BellSouth's stock price and the reinvestment of quarterly dividends. o After the public offering of Latin America group stock, your investment will fluctuate based upon changes in the BLS group stock price and the reinvestment of quarterly dividends. o After the distribution of Latin America group stock (discussed above) your investment in BellSouth will include both BLS group stock and Latin America group stock. The value of your investment will then fluctuate based upon changes in the BLS group stock price, the reinvestment of BLS group quarterly dividends and changes in the Latin America group stock price. Q4. Will I be able to invest in Latin America group stock through the 401(k) Plan? A4. Yes, participants in the 401(k) Plans will eventually be able to invest in Latin America group stock. However, this option may not be available until after the distribution of Latin America group shares. We will provide more details when we have a final plan. Q5. Will I be able to invest in the Latin America group stock through the existing stock purchase plans for employees? A5. Yes, employees will be able to invest in the Latin America group stock through the existing stock purchase plans for employees. We will provide more details when we have a final plan. Q6. How will the 401(k) Plan employer match and LESOP awards be handled after the Latin America tracking stock is distributed? A6. The 401(k) match and/or LESOP awards will be made in some combination of BLS group stock and Latin America group stock after the distribution. The exact ratio has not yet been determined. Q7. Considering what has happened to the AT&T tracking stock for its domestic cellular business, why is BellSouth interested in doing a tracking stock? A7. A tracking stock is just another class or series of a corporation's common stock. Although a tracking stock is created to reflect the separate performance of a group of assets/business units/divisions, etc., its value is not immune from the market's perception of the strength of the company as a whole, including the strength of management. We believe that the performance of AT&T's tracking stock reflects the market's view that AT&T has some fundamental weaknesses in its business and does not necessarily indicate there is a problem with the tracking stock concept. We also believe that BellSouth's situation is very different from AT&T's. This notice shall not constitute an offer to sell, or the solicitation of an offer to buy any securities. -----END PRIVACY-ENHANCED MESSAGE-----