November 29, 2004
Cingular Wireless to Sell Properties to Alltel for $170 Million
Nov. 27--Cingular Wireless will sell some of its wireless properties in five states to Alltel Corp. for $170 million in cash, partially fulfilling federal regulatory conditions for Cingular's merger with AT&T Wireless.
In Texas, Cingular will sell licenses, network assets and operations in Sherman, Denison and Jack County to Alltel. The deal, expected to close in the spring, includes the sale of wireless radio spectrum in Georgia and Texas.
"It's a win-win scenario for both parties," analyst Rick Black told Bloomberg News on Friday. Black, who works for Blaylock & Partners, which is based in New York, said the sale gives Little Rock, Ark.-based Alltel strategic spots for its wireless network.
Cingular will still need to sell radio spectrum in Dallas-Fort Worth, Detroit, Knoxville, Tenn., and a few smaller markets to meet conditions set by federal regulators for the $41 billion merger, Cingular spokesman Mark Siegel said.
"One of the things we want to be able to demonstrate is Cingular is aggressively trying to make this merger work," Siegel said.
As part of the deal, the two companies will swap ownership of wireless operations in other parts of the country. Alltel will relinquish minority stakes it has in Cingular's operations in Wichita, Kan., Kansas City, Mo., Milwaukee and parts of Texas. Cingular will return ownership stakes it has in Alltel's operations in north Louisiana, parts of Michigan and Toledo, Ohio.
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