DoCoMo in talks with AWE?
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October 30, 2000: 6:59 p.m. ET
NTT DoCoMo reportedly negotiating for a minority stake in AT&T Wireless
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NEW YORK (CNNfn) - Japan's top mobile phone company, NTT DoCoMo, is negotiating to take a minority stake in AT&T Wireless, according to a published report Monday.
According to the Financial Times Web site, DoCoMo is looking at buying a 10-to-20 percent stake in AT&T Wireless (AWE: Research, Estimates) to break into the United States, but AT&T Wireless' asking price is the biggest obstacle.
Based on AT&T Wireless' closing price of $23.06 Monday, a 10 percent stake would cost about $4.7 billion.
On Sunday, the Wall Street Journal reported NTT DoCoMo was in talks with two U.S. wireless companies likely to be AT&T Wireless and Cingular, the joint venture formed by SBC Communications (SBC: Research, Estimates) and BellSouth Corp. (BLS: Research, Estimates).
Rumors of DoCoMo's interest in Cingular have circulated since the middle of August.
Shares of wireless companies have struggled due to increased competition, and AT&T Wireless has not finished above its offering price of $29.50 since May.
Wireless companies will need cash on wireless spectrum space late this year and next year, and AT&T Wireless also must pay debt to AT&T (T: Research, Estimates) when it splits from the company.
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NTT DoCoMo
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