Newsletter Signup
Where current and emerging technology trends meet.
TecTrendsInformation Sources, Inc.
  | About TecTrends | Email Signup | Contact Us
 Live Search:
Live Search | Articles | Companies | TecTerms | Products
  Loading TecTrends Live Search - please wait... 
View Noteworthy Articles      PRNewswire
 
Article

Title: Verizon to Acquire Rural for $2.67bn

Author: Taylor, Paul; Pimlott, Daniel Article Type: Company
Source: Financial Times, p17(1) Publication Date: Jul 31, 2007
URL of Publication: http://www.ft.com

The second-largest mobile carrier in the United States, Verizon Wireless, plans to acquire Rural Cellular in a deal valued at $2.67 billion. This will expand the company's wireless service coverage in rural markets and also add some 700,000 subscribers to its service. According to Ivan Seidenberg, chief executive officer at Verizon Wireless, the deal was announced just as Verizon Communications showed strong second-quarter earnings. These results were fueled by Verizon Wireless' addition of 1.3 million new subscribers during that quarter. Seidenberg said the acquisition will be carried out by Verizon Wireless with the enthusiastic support of Vodafone. Vodafone has until August 9 to decide if it wants to exercise a 'put' option that will entitle it to sell shares of Verizon Wireless worth as much as $10 billion to Verizon Communications. The stake of Vodafone is said to be worth approximately $58 billion. This is an increase from a valuation of $47 billion in 2006, due to the performance of Verizon Wireless. The acquisition of Rural Cellular must first obtain approval from the company's shareholders and from regulators. The deal is expected to close in the first six months of 2008. The acquisition comes shortly after AT&T, the chief rival of Verizon, said it would acquire Dobson Communications, a leading rural carrier, for $2.8 billion in cash.

Companies:
Rural Cellular Corp (Unicel) Verizon Wireless Inc

TecTerms:


[Get Copyright Permissions] Click here for copyright permissions!
Copyright 2004-2008 Information Sources Inc.
 


Home About TecTrends About Us Contact Us Privacy Statement Terms and Conditions

TecTrends | P.O. Box 8120 | Berkeley CA 94707 | (510) 525-6220 | Email: tectrends@tectrends.com
© 2006 INFORMATION SOURCES INC | All rights reserved.