graphic
News > Deals
AT&T, BellSouth in pact
October 23, 1998: 12:03 p.m. ET

AT&T puts $1B into new venture; two firms to split control of cellular
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - AT&T Corp. and BellSouth Corp. have reorganized their partnerships in jointly owned cellular phone ventures serving Los Angeles and Houston, the two companies said Friday.
     The agreement calls for AT&T to contribute just over $1 billion to a newly formed entity that will hold their existing ownership of Los Angeles Cellular, Houston Cellular and Galveston (Texas) Cellular. AT&T will own about 55 percent with BellSouth holding the remaining 45 percent.
     As part of the agreement, a new management structure will be implemented. Subject to oversight by the jointly controlled company, AT&T (T) will manage Los Angeles Cellular while BellSouth (BLS) will manage systems in Houston and Galveston.
     The realignment represents another step for AT&T's strategy of establishing a national wireless brand. The pact will allow the long-distance carrier to push marketing of its Digital One Rate plan, which offers rates of 11 to 15 cents per minute, into Los Angeles' 15 million potential subscribers.
     Talks have been going on for at least a year about some sort of realignment of the partnerships, but negotiations intensified over the last two weeks, the Wall Street Journal reported earlier Friday.
     The new agreements are subject to regulatory review. Back to top

  RELATED STORIES

AT&T buying Vanguard - Oct. 5, 1998

BellSouth beats Street - July 21, 1998

  RELATED SITES

AT&T

BellSouth


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.