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February 17, 2004

Cingular Acquires AT&T Wireless

US mobile telephone operator Cingular has announced that it will acquire rival AT&T Wireless for $41B. The deal creates the largest US wireless provider, with 46 million customers and sales of over $32B.

Cingular is a joint venture between BellSouth and SBC Communications, with over 24 million customers. AT&T Wireless is the second-largest US wireless carrier, with over 22 million subscribers.

British mobile phone company Vodafone was the other participant in a bidding war for AT&T Wireless, which was up for sale with a deadline of Feb 13, extended to Feb 15.

The acquisition is still subject to shareholder and regulatory approval, but is expected to close by late 2004.

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