AT&T takes control of TeleCorp for US$4.7B

AT&T Wireless, the wireless division of AT&T, will take full control of TeleCorp with the purchase of the 77 percent of the company it does not already own in an all-stock deal valued at US$4.7 billion, AT&T Wireless announced Monday.

The deal breaks down to $2.4 billion in shares, the assumption of $2.1 billion in TeleCorp PCS debt and $221 million in preferred securities, the companies said in a statement.

TeleCorp PCS is already AT&T Wireless' largest affiliate, reporting in its third quarter a total of 914,000 subscribers, AT&T and TeleCorp PCS said.

As a result of its full acquisition of TeleCorp PCS, AT&T plans to roll out its wireless-branded services to 32 million more people across 14 states, primarily in the Southeast and Midwest, AT&T and TeleCorp PCS said.

Pending approval from TeleCorp PCS shareholders as well as standard regulatory approval from the Federal Communications Commission and Department of Justice, the deal is expected to close in the first half of 2002, the companies said.

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