NEW YORK-As part of a joint venture agreement with AT&T Wireless Services, BellSouth Corp. redeemed its 55.6 percent partnership interest in AB Cellular Holding LLC, giving AT&T ownership of the venture’s Los Angeles cellular market. BellSouth will hold the remaining ownership of AB Cellular which includes the entire Houston market, most of the Galveston, Texas, market and more than $1 billion in cash.
The partnership was originally entered into in 1994 when AT&T joined BellSouth as a partner in the Los Angeles and Houston markets through AT&T’s acquisition of McCaw Cellular Communications.
BellSouth said it would contribute the assets from the transaction to Cingular Wireless, its wireless joint venture with SBC Communications Inc. In addition, Cingular will retain a 20 megahertz PCS license in Southern California, including the Los Angeles market.
The transaction, which is scheduled to be completed by the end of the year, satisfies the Department of Justice requirement for BellSouth and SBC to divest of overlapping properties in Los Angeles.
