AT&T Acquires Vanguard Cellular Systems.NEW YORK--(BUSINESS WIRE)--May 3, 1999-- AT&T said today that it had completed its acquisition of Vanguard Cellular Vanguard Cellular was a cellular carrier formed in 1984 by Steve Leeolou, Haynes Griffin, Rich Preyor and Chuck Hagel. It was the largest independent non-wireline cellular carrier in the 1990's. Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : VCELA), announced October 5, 1998. Vanguard, with more than 700,000 subscribers in suburban and rural markets in the Ohio Valley and Northeastern U.S., fills a strategic position in AT&T's wireless coverage. AT&T said the cash and stock transaction is valued at approximately $1.7 billion, including about $600 million in assumed debt. In the merger, Vanguard shareholders were entitled to elect to receive either cash or AT&T stock in exchange for their Vanguard shares. Because stock elections were made for a greater number of Vanguard shares, holders of Vanguard shares that elected cash (or did not elect) will receive $23 in cash for each Vanguard share; and, holders of Vanguard shares that elected stock will receive approximately 0.3134 shares of AT&T stock (with cash in lieu Cash In Lieu (CIL) In a typical exchange offer, "old" shares of the target company are exchanged for "new shares". of fractional shares) and approximately $10.95 in cash for each Vanguard share. Equiserve L.P., the exchange agent, expects to begin mailing checks and AT&T stock certificates to former registered Vanguard shareholders on May 7, 1999. "Completing this merger will bring AT&T's highly competitive wireless services, including Digital One Rate, and its extensive nationwide network to Vanguard customers," said Dan Hesse, AT&T Wireless president. "Also, the Vanguard network will enable AT&T to increase its wireless coverage in the Northeastern U.S. by 30 percent and its national coverage by nine percent." AT&T Wireless Services, Inc. operates the largest digital wireless network in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. providing wireless voice, data and aviation communication services. At the end of first quarter, 1999, AT&T Wireless Services, Inc. had more than 10 million total wireless customers which included 7.6 million Digital PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. customers. AT&T Wireless Services, Inc. is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AT&T Corp. (NYSE NYSE See: New York Stock Exchange :T), a world leader in telecommunications services and technology. |
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