Cingular Wireless won the bidding war to acquire AT&T Wireless Services for nearly $41 billion in cash, a deal that would create the nation's largest cell phone company.
Combined, Cingular and AT&T Wireless will have 46 million subscribers, enough to leapfrog Verizon Wireless' market leading customer base of 37.5 million.
Cingular, a joint venture between SBC Communications Inc. and BellSouth Corp., said its winning bid was for $15 per share, an amount that would value AT&T Wireless at $40.7 billion. Cingular will also assume $6 billion of debt owed by AT&T Wireless.
The agreement, subject to the approval of AT&T Wireless shareholders and regulatory authorities, may be the largest all-cash buyout in U.S. history, said David Caouette, spokesman for AT&T Wireless.
The combined company will carry the Cingular name and once a deal is approved, billing and other operational functions will be merged, though there will be no immediate impact on customers, said Ralph de la Vega, Cingular's chief operating officer.
Combined, Cingular and AT&T Wireless will have 46 million subscribers, enough to leapfrog Verizon Wireless' market leading customer base of 37.5 million.
Cingular, a joint venture between SBC Communications Inc. and BellSouth Corp., said its winning bid was for $15 per share, an amount that would value AT&T Wireless at $40.7 billion. Cingular will also assume $6 billion of debt owed by AT&T Wireless.
The agreement, subject to the approval of AT&T Wireless shareholders and regulatory authorities, may be the largest all-cash buyout in U.S. history, said David Caouette, spokesman for AT&T Wireless.
The combined company will carry the Cingular name and once a deal is approved, billing and other operational functions will be merged, though there will be no immediate impact on customers, said Ralph de la Vega, Cingular's chief operating officer.
]
Comment