[ Tuesday ]
Cingular Bids for AT&T Wireless - Source
By Derek Caney
NEW YORK (Reuters) - Cingular Wireless has made a formal offer to buy AT&T Wireless Services Inc. (AWE.N: Quote, Profile, Research) , in a move that would create the largest wireless service in the United States, a source familiar with the matter said on Tuesday.
The wireless industry is believed to be ripe for consolidation, amid slowing subscriber growth and cutthroat competition among the six major U.S. companies.
The source declined to specify the price of No. 2 wireless company Cingular's all-cash offer for AT&T Wireless, which has a market capitalization of about $27 billion, nor would he characterize it as friendly or unsolicited. The offer is believed to be at a premium over AT&T Wireless's closing price of $9.99 in Friday's trading on the New York Stock Exchange, he said.
Spokesmen from Cingular, a joint venture between local telephone companies SBC Communications Inc. (SBC.N: Quote, Profile, Research) and BellSouth Corp. (BLS.N: Quote, Profile, Research) , and from AT&T Wireless declined to comment. BellSouth also declined to comment. An SBC spokesman was not immediately available to comment.
Sources familiar with the matter said AT&T Wireless' board of directors is meeting today, but declined to say if the offer was on the agenda. Its board met Monday, as well.
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