AT&T to pay $780 million for rural wireless assets

Tue Jan 22, 2013 10:14pm IST

Related Topics

Stocks

   

REUTERS - AT&T (T.N) will pay $780 million in cash to acquire Atlantic Tele-Network Inc's (ATNI.O) U.S. retail wireless operations operating under the Alltel brand, AT&T said on Tuesday, announcing a move aimed at boosting its service in rural areas.

Atlantic Tele-Network shares rose 11 percent after the news was announced on Tuesday.

The Alltel brand serves about 585,000 customers in mostly rural areas in the states of Georgia, Idaho, Illinois, North Carolina, South Carolina and Ohio. AT&T said the spectrum it is buying is complementary to its current network.

It said it does not expect the deal to result in "significant" dilution to earnings per share or hurt cash flow.

After AT&T's bid to buy Deutsche Telekom unit (DTEGn.DE) T-Mobile USA for $39 billion failed in late 2011, the company has sought other ways to meet growing demand for data services from smartphone users by expanding spectrum holdings to improve network capacity.

AT&T expects the deal, which is subject to review by the U.S. Federal Communications Commission and the Justice Department, to close in the second half of the year.

After the sale, Atlantic Tele-Network will have still have telecom operations in the U.S. Southwest, New England, New York State, Guyana, Bermuda and portions of the Caribbean islands.

In August, AT&T agreed to buy NextWave Wireless Inc WAVE.PK for $50 million and $550 million in debt assumption.

On January 17, AT&T said it will take a fourth-quarter charge of about $10 billion due to bigger-than-expected pension obligations. It also expects to take a $175 million reduction in operating income because of infrastructure damage inflicted by storms including Superstorm Sandy.

Shares of Atlantic Tele-Network rose $4.34 or 11 percent to $43.71 in morning trade on Nasdaq. AT&T shares rose 4 cents to $33.48 on New York Stock Exchange.

(Reporting By Liana B. Baker; Editing by Theodore d'Afflisio and David Gregorio)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Reuters Showcase

Artificial Intelligence

Artificial Intelligence

Google bolsters artificial intelligence efforts, partners with Oxford.  Full Article 

Addressing Concerns

Addressing Concerns

China's Xiaomi shifts some smartphone user data out of Beijing on privacy concerns.  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

Apple-1 Auction

Apple-1 Auction

Early Apple computer sells for $905,000 at auction.  Full Article 

No More Nokia

No More Nokia

Microsoft looks set to drop Nokia name from smartphones.  Full Article 

Deal Talk

Deal Talk

Apple ponders sapphire options, leaves door open for GT.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage