US Cellular To Buy Cellular One Neb, Kan, Opers CHICAGO -(Dow Jones)-
U.S. Cellular Corp. (USM) signed a definitive agreement to acquire Celluar One operations and customers in Nebraska and Kansas from Alltel Corp. (AT) in exchange for its own wireless networks and customers in Idaho and a $50 million payment.
This exchange of wireless properties will greatly strengthen U.S. Cellular's Midwestern footprint, wireless service carrier U.S. Celluar said in a press release Tuesday. U.S. Cellular said Monday night it signed a definitive agreement with a unit of Alltel to exchange 850 MHz cellular properties that will enhance the operations of both companies.
U.S. Cellular, which posted 2004 revenue of $2.84 billion, expects the agreement to close during the fourth quarter, subject to approval by the Federal Communications Commission and the Justice Department.
In Nebraska and Kansas, U.S. Cellular will acquire roughly 125,000 retail customers, 193 cell sites, 15 company-owned retail locations and 89 authorized agent locations, in an area containing about 1.4 million people.
In return, Alltel will receive nearly 91,000 customers, 84 cell sites, six company-owned retail locations and 32 authorized agent locations, in an area that has nearly a half million people.
Until the transaction closes, both companies will continue serving their customers in their current markets. After the deal is closed, the companies will own the exchanged assets but will operate their stores and agent locations under their current brand names until they can be remodeled.
Company Web site: uscellular.com -Jenny Park; Dow Jones Newswires; 201-938-5400; AskNewswires@dowjones.com (END) Dow Jones Newswires September 13, 2005 09:44 ET (13:44 GMT) Copyright (c) 2005 Dow Jones & Company, Inc |
