AT&T to Sell Japan Telecom Stake to Vodafone Group for $1.35 Billion.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 27, 2001 AT&T Corp. today confirmed Vodafone Vodafone Group Plc is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £84.7 billion (July 2007). Group plc.'s announcement that Vodafone has agreed to acquire AT&T's 10 percent stake in Japan Telecom Co., Ltd. (Japan Telecom) for approximately $1.35 billion in cash, or approximately $21,125 per share. The net after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. proceeds to AT&T are expected to be approximately $1 billion. The transaction is expected to be completed in April 2001, and the proceeds will be split evenly between AT&T and AT&T Wireless. AT&T acquired the Japan Telecom stake in August 1999 for approximately $612 million in consideration, consisting of cash and shares of AT&T Jens JENS Japan Enhanced Network Services Corporation. AT&T decided to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. the Japan Telecom investment following the recently announced strategic alliance between NTT DoCoMo (NTT Mobile Communications Network, Inc., Japan) Founded in 1991, NTT DoCoMo is a spinoff of Japan's NTT (Nippon Telegraph and Telephone Corporation) which provides wireless services, including cellular, paging, satellite and maritime and in-flight telephone services. and AT&T Wireless. NTT DoCoMo acquired shares of AT&T preferred tracking stock, equivalent to 406 million shares of AT&T Wireless tracking stock (an approximate16 percent economic interest in AT&T Wireless) for $9.8 billion on January 22, 2001 in connection with its strategic alliance. The boards of directors of AT&T and Vodafone have approved the definitive agreement. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion