AT&T acquires Cellular One carrier in deal worth $5.1b
SAN ANTONIO -- AT&T Inc., the nation's largest wireless carrier, agreed yesterday to acquire rural wireless provider Dobson Communications Corp. for $2.8 billion.
The offer of $13 per share adds about 1.7 million customers to AT&T's nearly 62 million at a time when some analysts have questioned how much larger carriers can grow in a US wireless market that is saturated.
The offer represents a 17 percent premium over Dobson's closing price yesterday of $11.11 in trading on the Nasdaq Stock Exchange. Including debt, the deal is worth about $5.1 billion.
Oklahoma City-based Dobson does business under the Cellular One brand in rural and suburban markets in 17 states and has provided roaming services to AT&T since 1990.
AT&T chief executive Randall Stephenson, who took over for long-serving Ed Whitacre Jr. this month, has said AT&T will be a wireless-centered company going forward.
Stan Sigman, the president and chief executive of AT&T's mobility group, said Dobson's network and technology would fit almost perfectly with the company's existing network.
The company said the acquisition would have only minimal effect on the expected earnings per share for the year and would have a positive and growing effect on earnings and cash flow in the second year after the deal closes. 