Cox selling PCS stake to Sprint
ATLANTA, April 23 (Reuters) - Broadband communications firm Cox Communications
Inc. said on Friday it would sell its 40.8 percent stake in Cox Communications PCS LP to
Sprint Corp. (FON - news) in exchange for 24.3 million Sprint PCS (PCS - news) shares.
Cox said it had exercised an option requiring Sprint to make the deal. The transaction is
expected to close in the second quarter.
The deal will make Sprint the sole owner of the personal communications services operation that provides Sprint PCS service
in the Los Angeles, San Diego and Las Vegas areas.
Cox's ownership in the operation includes an 8.8 percent stake held by its majority shareholder, Cox Enterprises. In the deal
with Sprint, Cox Communications will receive 19 million Sprint PCS shares and Cox Enterprises will receive 5.3 million.
Cox Communications currently owns 49.3 million Sprint PCS shares, in addition to warrants and convertible preference shares.
David Woodrow, Cox senior vice president-new business development, said, ''While this transaction marks our departure
from the PCS business as an operator, we remain bullish on the business and are delighted to remain an investor. We believe in
the strength and strategic direction of Sprint PCS and, therefore, elected to receive public stock in the company instead of
cash.''
The deal is the final step in transferring ownership of Cox Communications PCS LP to Sprint. In 1998 Cox transferred 20
percent of its interest to Sprint, giving Sprint control of the venture and allowing it to fully integrate the Los Angeles, San Diego
and Las Vegas operations into its national PCS network.
Sprint PCS shares closed at 48-9/16 in New York Stock Exchange trading Thursday.
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