Printer Friendly

Sonera Sold 1.1 Million Powertel Shares for EUR 75 Million.

Business Editors

HELSINKI, Finland--(BUSINESS WIRE)--May 22, 2001

In compliance with terms of the agreement of August 28, 2000 on the sale of Powertel, Inc. (NASDAQ: PTEL) shares to Deutsche Telekom AG, Sonera (HEX: SRA, NASDAQ: SNRA) has utilized the right to sell up to 17.5% of its existing Powertel shares within the period extending from the shareholders' meeting of Powertel to the completion of the transaction. The shares sold today represent approximately 17.1 % of Sonera's Powertel shares. The shares were placed with Deutsche Bank.

The overall consideration of the transaction was approximately EUR 75 million. As previously announced, the proceeds from the sale will be used to reduce Sonera's debt. Sonera will record a gain of approximately EUR 30 million from the transaction in the second quarter of the year.

In the summer of 2000, Sonera signed an agreement on selling its shares in two U.S. GSM operators, VoiceStream Wireless Corporation (NASDAQ: VSTR) and Powertel, Inc., to Deutsche Telekom. After the present sale, the overall value of Sonera's remaining VoiceStream and Powertel shares, based on the closing price of May 21, 2001, totals about EUR 2.2 billion, of which the amount to be paid in cash is about EUR 310 million. The rest of the Sonera's VoiceStream shares will be paid in the form of Deutsche Telekom shares.

Both the U.S. Federal Communications Commission (FCC) and the justice department have cleared the transaction. Sonera estimates that the transaction will be completed as originally scheduled, i.e. by the end of June.
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion




Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1USA
Date:May 22, 2001
Previous Article:Textron To Confirm Outlook at Merrill Lynch Global Industries Conference.
Next Article:Snow Leopard Resources Inc. - Announcement.

Related Articles
Sonera Sale of Powertel and VoiceStream Shares to Deutsche Telekom Completed.
Sonera Sold Deutsche Telekom Shares for EUR 565 Million; Companies Agree to Pre-Lock-Up Sale.
Sonera Sells Deutsche Telekom Shares for EUR 185 Million, Cutting of Debt Progresses.
Sonera Sells Deutsche Telekom Shares for EUR 393 million.
Sonera Sold All Its Remaining Deutsche Telekom Shares.
Telia and Sonera to Merge Creating the New Leader in Nordic Telecommunications.
Sonera has Exercised the Put Option to Convert Its Eliska Ownership to Deutsche Telekom Shares -- The Received Deutsche Telekom Shares Were Sold...
Sonera has Exercised the Put Option to Convert Its Eliska Ownership to Deutsche Telekom Shares -- The Received Deutsche Telekom Shares Were Sold...
Sonera/Telia Merger Timetable Update.
The Parties of Lattelekom Arbitration Have Stated Their Claims.

Terms of use | Copyright © 2015 Farlex, Inc. | Feedback | For webmasters