AT&T Inc., the second-largest U.S. mobile-telephone company, completed its $945 million purchase of Centennial Communications Corp., expanding network coverage in Puerto Rico and the U.S. Midwest and Southeast.
AT&T, which agreed to pay $8.50 a share and take on about $2 billion in debt for Wall, New Jersey-based Centennial, made the announcement in a statement today. Regulators approved the deal with conditions yesterday, the Federal Communications Commission said on its Web site.
AT&T and Verizon Wireless, the biggest U.S. mobile-phone service, are expanding through acquisitions as subscriber growth slows with many in the U.S. already using a wireless device.
Integration costs will result in “minimal dilution” to AT&T per-share earnings and cash flow in 2009, the company said.
The Justice Department approved the deal Oct. 13 and said the combined company must sell assets in Louisiana and Mississippi.
The FCC said its conditions included the divestitures required by the Justice Department, and commitments offered by the companies. These include a pledge by AT&T to limit contact with America Movil SAB, Latin America’s largest mobile phone company and a competitor to AT&T and Centennial in Puerto Rico.
AT&T also must honor agreements that other companies struck to complete telephone calls over Centennial’s network, the FCC said.
AT&T told FCC staff that the company could provide advanced services to Centennial customers, according to a disclosure filing. FCC Commissioner Michael Copps, a Democrat, said in a statement that “the company’s assertion that it will do this lacks solid commitment.”
Dallas-based AT&T fell 1 cent to $25.93 at 4 p.m. in New York Stock Exchange composite trading.
The cash price for the deal is based on 111.16 million Centennial shares outstanding on Oct. 5.
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AT&T-Centennial Deal Gets Final Regulatory Approval From FCC
Source: Bloomberg
Date: 11/06/2009
