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News
Issue #2001 - 42
(October 2001)
(Updated Oct.
17, 2001)
ACQUISITIONS,
MERGERS & AGREEMENTS
AT& T Wireless to Acquire TeleCorp PCS for $4.7-Billion
AT&T Wireless
announced it would acquire the 77 percent of TeleCorp PCS it does
not already own in an all-stock deal valued at $4.7 billion. The
Redmond, Washington, company says this is the single most important
move it could make in an effort to expand its national footprint,
putting it on par with the competition.
"We’re set to quickly roll out AT&T Wireless-branded
services to 32 million more people across 14 states, " says
John Zeglis, chairman and CEO of AT&T Wireless. "That
includes 16 of the top 100 US.. markets, eight of the top 50 markets
and more than 900,000 existing TeleCorp customers. Soon, we will be
offering millions of potential new customers a full array of
AT&T Wireless’ popular local, regional and national
offers."
Mr. Zeglis adds that the company will include these new markets
as part of its forthcoming next generation network.
The companies expect the transaction to close in the first half
of 2002, following approval from TeleCorp PCS shareholders and
approvals from the FCC and Department of Justice. However, seeking
approval from the former might not be that straightforward. Already,
the deal has sparked opposition.
Two days following AT&T Wireless’ announcement, a TeleCorp
shareholder filed a lawsuit in Delaware, Chancery Court against the
directors of the Virginia-based company, claiming that AT&T
Wireless’ offer of $14.51 per share is far too low, reported
Bloomberg.
The shareholders claims in the lawsuit that the price "is
unconscionable and unfair and grossly inadequate because, among
other things, the intrinsic value of TeleCorp’s common stock is
materially in excess of the amount offered."
For more information: http://www.att.com
Mobileinfo Comments & Advisory: It
should help AT&T a bit more than it will help enterprises. It is
not a smooth sailing either. However, AT&T does need some more
footprint than what it has to become a national player.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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