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PrimeCo alliance retooled
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August 3, 1999: 5:42 p.m. ET
Bell Atlantic, Vodafone realign interests in wireless communications alliance
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NEW YORK (CNNfn) - Vodafone AirTouch and Bell Atlantic Corp. agreed Tuesday to restructure their ownership interests in wireless telecommunications alliance PrimeCo Personal Communications.
Under terms of the agreement, Bell Atlantic (BEL) will assume ownership of PrimeCo operations in Richmond, Va., New Orleans, Los Angeles, Miami, Tampa and Jacksonville, Fla. Vodafone (VOD) will take over operations in Chicago, Milwaukee, Dallas, Houston and San Antonio, Texas.
Bell Atlantic said last year it may have to restructure its PrimeCo partnership because of its merger agreement with GTE Corp. (GTE). PrimeCo is building a wireless service in areas that overlap with GTE cellular service.
That deal, which the companies announced last July, has been approved by the firms' shareholders and the U.S. Justice Department. Bell Atlantic and GTE are still awaiting approval from the Federal Communications Commission.
The companies expect to close the deal by the end of the year or the first half of 2000.
Bell Atlantic and AirTouch created the PrimeCo partnership in 1994. The alliance was originally slated to end in 2001, but Bell Atlantic wanted to terminate the pact sooner after AirTouch spurned its takeover offer and agreed to be acquired by Vodafone. Vodafone completed its acquisition of AirTouch on June 30.
Bell Atlantic shares slipped 1 to close at 64. Shares of Vodafone American depositary receipts fell 15/16 to 208-15/16.
-- from staff and wire reports
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