SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) January 2, 2004
LYNCH INTERACTIVE CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-15097 06-1458056
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(State or other (Commission File (IRS Employer
Jurisdiction of Number) Identification)
Incorporation)
401 Theodore Fremd Avenue, Rye, New York 10580
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: 914-921-8821
ITEM 5. Other Events and Required FD Disclosures.
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On December 31, 2003, Lynch Interactive Corporation ("Interactive") closed on a
transaction that it described in its Form 10-Q, issued November 14, 2003,
whereby Sunshine PCS Corporation, in which Interactive has investments of
preferred stock, common stock and warrants, has sold its three PCS licenses to
Cingular Wireless for a total of $13.75 million. As part of this sale,
Interactive agreed to accept $7.6 million in exchange for all its preferred
stock and warrants of Sunshine.
Beginning in 1996, Interactive made cumulative cash investments in these assets
of over $20 million. At September 30, 2003, all of the preferred stock had a
liquidation value of $26.4 million. Interactive's current book value in these
investments is $3.6 million as a result of previously recorded reserves for
impairments. The final accounting for this transaction will take into account
the proceeds received by Interactive as well as certain indemnification
obligations.
While there is a sizeable economic loss on the sale, because Interactive
provided a reserve for impairment for $17 million of its costs, Interactive
could recognize a book profit of up to $4 million.
SIGNATURE
Pursuant to requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this current report to be signed on its behalf by the
undersigned hereunto duly authorized.
LYNCH INTERACTIVE CORPORATION
/s/Robert E. Dolan
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Robert E. Dolan
Chief Financial Officer
Date: January 2, 2004