CHICAGO-United States Cellular Corp. and its parent company, Telephone and Data Systems Inc., announced plans to sell to AirTouch Communications Inc. its minority interests in the cellular systems serving Seattle and Olympia, Wash.; Tucson, Ariz.; Duluth, Minn.; and rural areas in Arizona, Colorado and Idaho.
Terms of the transaction call for AirTouch to issue about 5 million shares of common stock and $50 million in cash to U.S. Cellular and TDS in exchange for the interests. Approximately 900,000 pops are covered by the interests, said U.S. Cellular.
The interests were the subject of an existing purchase agreement between U.S. Cellular and TDS, said TDS, which will retain the AirTouch common stock-about 1 million shares-and pay U.S. Cellular $20 million to terminate those purchase rights. U.S. Cellular will receive the remaining 1 million shares of AirTouch common stock and the $50 million cash.
The transaction will resolve pending litigation between U.S. Cellular, U S West Media Group and AirTouch.
