AT&T, Centennial deal gets Justice Department okay

Oct 13, 2009

(AP) -- AT&T Inc. has reached an agreement with the Justice Department and the Louisiana Attorney General to sell off assets in eight markets in Louisiana and Mississippi in order to proceed with its proposed $944 million acquisition of Centennial Communications Corp.

The Federal Communications Commission is continuing to review the wireless merger, which was announced late last year. Under the terms of the deal, Centennial stockholders will receive $8.50 per share in cash.

The Justice Department said it is requiring AT&T to divest Centennial assets in southwestern and central Louisiana and southwestern Mississippi in order to preserve competition in those markets.

Dallas-based AT&T expects the deal to close early in the fourth quarter.

AT&T is the second largest wireless carrier in the U.S., with nearly 80 million subscribers nationwide.

Centennial Communications has about 1.1 million wireless subscribers in six states, Puerto Rico and the Virgin Islands. Late Tuesday, the Wall, N.J.-based company reported income of $19.5 million, or 17 cents per share, on $258.9 million in revenue for its fiscal 2010 first quarter, which ended in August.

Centennial's shares rose 41 cents, or 5.1 percent, to close at $8.39 on Tuesday. AT&T's shares rose 30 cents to $25.90.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: BlackBerry courts iPhone users with cash

add to favorites email to friend print save as pdf

Related Stories

AT&T to buy territories from Verizon for $2.35B

May 09, 2009

(AP) -- AT&T Inc. said Friday it will buy the assets of Verizon Wireless in 79 mainly rural areas for $2.35 billion, a deal that will affect more than 1 million subscribers.

Verizon 1st-qtr profit, revenue beat expectations

Apr 27, 2009

(AP) -- Verizon Communications Inc. said Monday its earnings grew 5 percent in the first quarter, boosted by its acquisition of Alltel Corp. and strong demand for its wireless, Internet and TV services.

Economy and iPhone subsidies trim AT&T's 2Q profit

Jul 23, 2009

(AP) -- AT&T Inc.'s earnings fell 15 percent in the second quarter as it subsidized a record-setting launch of the newest iPhone. The weak economy also continued to sap its landline business.

Cisco expands again, buying Starent for $2.9B

Oct 13, 2009

(AP) -- Betting on the growing popularity of data-hungry phones like the iPhone, Cisco Systems Inc. said Tuesday it had agreed to pay $2.9 billion for Starent Networks Corp., a maker of equipment for wireless ...

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

Sprint Nextel to buy Virgin Mobile USA

Jul 28, 2009

(AP) -- Sprint Nextel Corp. is intensifying its focus on the fast-growing market for prepaid cell phone service with a $483 million deal to buy Virgin Mobile USA Inc.

Recommended for you

BlackBerry courts iPhone users with cash

16 hours ago

Canadian smartphone maker BlackBerry is wooing Apple customers with a cash offer for trade-ins of iPhones for its new square-screened, keyboard-equipped Passport.

HP earnings show continued struggle

17 hours ago

Venerable tech giant Hewlett-Packard has been struggling for three years to turn its business around. Its latest earnings show it still has more work ahead.

Apple market value hits $700 bn

23 hours ago

A rise in Apple shares Tuesday pushed the market value of the trend-setting US tech icon above $700 billion, becoming the first company to hit that milestone.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.