November 27, 2004
Cingular Wireless to Sell Assets to Alltel Corp.
ATLANTA (Dow Jones/AP) -- Cingular Wireless signed a definitive agreement to sell Alltel Corp. former AT&T Wireless properties, including licenses, network assets and subscribers in certain markets, for $170 million in cash.
In a press release Friday, Cingular said the transaction will allow it to meet a substantial portion of the divestiture obligations imposed by the Department of Justice and Federal Communications Commission as conditions of their approval of Cingular's merger with AT&T Wireless. In late October, the FCC consented with conditions to the proposed merger of Cingular Wireless and AT&T Wireless in a deal valued at $41 billion.Atlanta-based Cingular is a joint venture between San Antonio- based SBC Communications Inc. and BellSouth Corp., also based in Atlanta.
Cingular Wireless and Alltel will swap significant partnership interests, with Cingular receiving interests in such markets as Wichita, Kan.; Kansas City, Mo.; Milwaukee; and several in Texas. Alltel, in turn, will gain more ownership in markets it manages in Michigan; north Louisiana; and Toledo, Ohio.
Cingular said the closing of the transaction is contingent upon regulatory approval and is expected to occur in the first quarter of 2005.