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AT&T buying Vanguard
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October 5, 1998: 9:21 a.m. ET
Holders of Cellular One operator to get cash or stock in $1.5B buyout
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NEW YORK (CNNfn) - AT&T Corp. agreed Monday to buy Vanguard Cellular Systems, provider of Cellular One brand services, for $1.5 billion, including about $600 million in debt.
Under terms of the deal, each Vanguard Cellular share will be exchanged for either $23 cash or 0.3987 of an AT&T share, at the shareholders' choice.
The boards of both companies have approved the merger, which is expected to close in the first quarter of 1999 pending regulatory approval.
"This merger is a natural," said Dan Hesse, President of AT&T Wireless Services. "With Vanguard Cellular, AT&T can significantly increase its footprint in the eastern U.S., providing additional service offers and availability to our customers."
Vanguard, based in Greensboro, N.C., was founded 14 years ago. It has 625,000 customers and is among the largest independent operators of cellular telephone systems in the United States.
AT&T serves more than 90 million customers and has annual revenue of more than $52 billion.
"We are proud to be entering into a transaction where our shareholders and customers will have an ongoing relationship with such a respected leader in the industry," Vanguard co-founders Haynes G. Griffin and Stephen R. Leeolou said in a joint statement.
Shares of AT&T [T] closed Friday on the New York Stock Exchange at 58-5/8.
Shares of Vanguard [VCELA] closed at 19-7/8 on the Nasdaq.
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AT&T
Vanguard Cellular
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