The urge to merge; the cellular industry, facing competition from PCS, is in the midst of a major shake-up

Article Abstract:

The cellular industry is headed for a major shake-up due to the introduction of personal communications services (PCS) technologies. PCS technologies promise to offer much of the same services that cellular services currently provide. PCS regulators plan to allow at least five major suppliers of wireless services per region, upsetting the cellular industry's current duopoly. The possible onslaught of these new services has prompted major cellular players to upgrade their networks and join forces. For example, Bell Atlantic Corp has merged with Nynex Corp, US West Inc has joined AirTouch Communications and AT&T has acquired McCaw Cellular Communications. Smaller players are concerned that the partnering frenzy may leave a market controlled by a few wireless giants. However, some believe that the mergers may speed up the delivery of new wireless technologies. The bigger players will also need the services of smaller companies to fill the gaps in the wireless coverage.

Forecasts and trends, Industry trend, Market trend/market analysis, Smart phone, Smart phones, Personal communications services

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Market backs Vodafone deal for Air Touch

Article Abstract:

Shares of Vodafone Group PLC increased 15% in Jan. 18, 1999 trading on the London Stock Exchange as investors demonstrated their enthusiasm for Vodafone's planned merger with AirTouch Communications Inc. The acquisition, which will engender a company called Vodafone AirTouch PLC, will create the biggest cellular telephone company in the world. The new company is expected to have a market capitalization in excess of $110 billion and $9.9 billion in annual revenue. Bell Atlantic Corp. was outbid for AirTouch by Vodafone. The new company will have limited reach in the US except through AirTouch's PrimeCo venture with Bell Atlantic. Bell Atlantic has asked in court to have that contract voided. The merging companies' CEOs look to increase the 35% stake AirTouch holds in German company Mannesmann Mobilfunk GmbH and to sell E-Plus Mobilfunk GmbH 17% stake held by Vodafone.

United Kingdom, United States, Asset sales & divestitures, Acquisitions & mergers, Vodafone Group PLC, AirTouch Communications Inc., ATI

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PriCelullar agrees to be purchased by American Cellular for $811 million

Article Abstract:

American Cellular has acquired cellular-telephone company PriCellular for about $811 million, or $14 a share, plus the assumption of $600 million of debt, according to insiders. The newly formed American Cellular is headed by veteran cellular operators Brian McTernan and John Fujii, as well as a financial consortium including Spectrum Equity Investors, Providence Equity Partners and Sandler Capital Management. PriCellular, which specializes in rural and less competitive markets, operates under CellularOne's service. The fast-growing PriCellular's cellular-phone systems serve about 5.1 million potential subscribers in nine states. Estimates call for PriCellular to report approximately $170 million in revenues and cash flow of about $67 million.

Company acquisition/merger, PriCellular Corp., American Cellular Corp., PC

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