AT&T Wireless tracking stock swap -
Credit Suisse and Goldman Sachs to handle exchange
--Ah yes, CSFB. I wonder what they'll be spewing out?-- Cooters
By Leticia Williams, CBS.MarketWatch.com
Last Update: 1:21 PM ET June 13, 2001
WASHINGTON (CBS.MW) -- AT&T said Goldman Sachs and Credit Suisse First Boston are underwriting the company's $3 billion spinoff of its wireless division expected later this year.
The underwriters will determine the offering price of the AT&T Wireless Services shares at a later date, according to a filing with the Securities and Exchange Commission Wednesday.
The wireless group will split from AT&T and become a publicly traded company through a redemption of its outstanding tracking stock (AWE: chart, news, alerts) in exchange for shares of its common stock and a dividend distribution to the shareholders of AT&T (T: chart, news, alerts) .
The split-off date is scheduled for July 9.
AT&T plans to retain $3 billion worth of the wireless company's common stock for use, after the spinoff, in a debt-exchange agreement to retire a portion of its debt obligations held by Credit Suisse and Goldman Sachs.
An exchange of AT&T wireless shares for AT&T's debt would be tax-free, according to the filing.
As reported, AT&T will redeem each share of AT&T Wireless Group tracking stock outstanding on the split-off date in exchange for one share of AT&T Wireless Services common stock.
Shares of the tracking stock gained 48 cents to $16.33, in recent trading, while AT&T's common shares slipped 14 cents to $21.13.
Leticia Williams is a reporter for CBS.MarketWatch.com in Washington. |
