NEW YORK (CNNfn) - Olivetti S.p.A. and Mannesmann AG will acquire all the outstanding common stock of Cellular Communications International in a $1.4 billion deal, the companies said Friday.
The two European companies will acquire Cellular Communications International Inc. (CCIL ), a New York-based cellular telephone operator, through a newly formed entity, Kensington Acquisition Sub., Inc.
Italy's Olivetti and Germany's Mannesmann are partners in a telecommunications joint venture in Italy, Oliman Holding B.V. CCIL's primary asset is an interest in an Italian mobile phone operator.
Under the agreement, Olivetti and Mannesmann will launch a $65.75 per share cash tender offer for all the outstanding shares of CCIL common stock by Dec. 18.
Once the offer is completed, the two companies will acquire any shares not tendered through a merger at the same price. The total price on a fully diluted basis will be about $1.4 billion.
The companies' boards have approved the offer and related transactions. Goldman, Sachs & Co. advised Olivetti and Mannesmann on the deal.
William Ginsberg, CCIL's chief executive officer, said the board recommended the sale to stockholders.
CCIL was up 2-31/32 at 64-31/32 in early afternoon trading.