TORONTO-Rogers Communications Inc. said it has failed to reach an agreement with AT&T Wireless Services Inc. to acquire AWS’ 34.1-percent interest in Rogers Wireless Communications Inc. during the recently completed 21-day exclusive negotiation period that ended May 19.
RCI said it offered $22.61 per share for AWS’ 48.6 million shares in Rogers Wireless during the negotiations. Rogers Wireless stock has traded below that price more than 85 percent of the trading days during the past three years, but it is a 6-percent discount compared with the average closing price from the previous 10 trading days. Under terms of their agreement, AWS can attempt to sell its entire stake in Rogers Wireless to a third party during the next 60 days at a price that must be higher than the $22.61 per share that RCI offered, though RCI would have a chance to match any offer.
RCI originally received notice from AWS April 28 that it intended to explore options to divest its interest in Rogers Wireless as part of its pending acquisition by Cingular Wireless L.L.C. AWS is also reportedly in negotiations with other affiliates, including Triton PCS Holdings Inc., regarding their post-acquisition relationships.
