NEW YORK—AT&T Wireless Services announced its plans to buy the 77 percent of TeleCorp PCS it does not already own. AT&T said it will purchase the remainder of the company for US$2.4 billion and take on US$2.1 billion in net debt and US$221 million in preferred securities. TeleCorp PCS shareholders will receive 0.9 shares of AT&T stock for each of their shares.
“This is a strategically and financially attractive transaction for both companies,” said AT&T Wireless Chief Executive Officer (CEO) John Zeglis. “For AT&T Wireless, it makes good use of our equity, while enabling us to maintain a strong balance sheet. TeleCorp shareowners will receive a fair premium and a good growth investment.”
Following the announcement, AT&T stock fell 3.47 percent to US$15.56, while shares of TeleCorp PCS leapt 35.46 percent to US$13.60.
