HOT: Cingular scoops up AT&T Wireless for $41 billion

Feb 17 2004 - 08:24 AM ET | AT&T Wireless
cingularCingular Wireless announced that its latest bid for AT&T Wireless has been picked as the winner. The $41 billion offer is still up for approval from share holders, but if it goes through will make Cingular the largest wireless company in the US with 46 million customers. $41 billion dollars works out to $15 a share. As of market close last Friday (the markets were closed Monday for the holiday), AT&T Wireless stock [AWE] was at $11.82 a share. In pre-market trading, AWE rose over $2 a share with market leading volume of over 12 million shares. For US consumers, this purchase means a few things. First, the US wireless market is now slightly less competitive. Second, due to having more spectrum, Cingular is expected to speed up the debut of 3G data services. And lastly, if you're a subscriber to either Cingular or AT&T Wireless, you should have better service. Because both networks are compatible, the benefits should be seen shortly after the cash changes hands. Cingular is hosting a conference call about the acqusition at 10AM ET. MobileTracker will not be apart of the call, but you can listen online. Many analysts believe that Cingular / AT&T Wireless is only the first of multiple buyouts in the US wireless market this year.