Cingular paid too much for AT&T Wireless

Those deep pocketed parent corporations are having fire sales to come up
with enough dinero to fund their planned purchase.

Bell South which previously said it wouldn't need to sell off assests
like SBC is doing, is now planning on doing just that.

http://story.news.yahoo.com/news?tmp...=/afp/20040304
/tc_afp/spain_latam_us_telecom_company_invest_telefonica_bellsouth&sid=96
001016

http://story.news.yahoo.com/news?tmp...93&e=2&u=/dowj
ones/20040304/bs_dowjones/200403040603000307

They hope to get $6 Billion by selling South American assests (with far
more growth potential than AT&T) to Spain's Telefonica.

---

› See More: Cingular paid too much for AT&T Wireless

[POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]

In <[email protected]> on Thu, 04 Mar
2004 13:01:06 GMT, "Robert M." <[email protected]> wrote:

>Those deep pocketed parent corporations are having fire sales to come up
>with enough dinero to fund their planned purchase.

I see no evidence of "fire sales" (see below).

>Bell South which previously said it wouldn't need to sell off assests
>like SBC is doing, is now planning on doing just that.

"BellSouth boss sees merger as local boon"
<http://www.ajc.com/business/content/...19saporta.html>

Because of the huge numbers involved, the top executives of both
parents had to be willing to part with assets. BellSouth is
contributing $15 billion toward the deal, while SBC is contributing
$21 billion. The deal also includes $5 billion currently in AT&T
Wireless' coffers.

"We paid a full price," Ackerman acknowledged on the $15-a-share
offer for AT&T Wireless. "We would not argue that we got a cheap
price. But we did get a lot for it. The assets that we will get will
enable us to clearly compete with anyone in the business."

>http://story.news.yahoo.com/news?tmp...=/afp/20040304
>/tc_afp/spain_latam_us_telecom_company_invest_telefonica_bellsouth&sid=96
>001016

Or <http://makeashorterlink.com/?Z3B126C97>

>http://story.news.yahoo.com/news?tmp...93&e=2&u=/dowj
>ones/20040304/bs_dowjones/200403040603000307

Or <http://makeashorterlink.com/?Q6C112C97>

Earlier Thursday, local press reports said the company was also
competing with Mexican wireless service provider America Movil and
Italy's Telecom Italia Mobile (I.TIM) for those assets.

Doesn't sound like a "fire sale" to me.

>They hope to get $6 Billion by selling South American assests (with far
>more growth potential than AT&T) to Spain's Telefonica.

<http://www.ajc.com/business/content/...19saporta.html>

Ackerman also believes the deal, ... holds great value for Cingular
and its two parents. SBC Communications owns the remaining 60 percent
of Cingular.

"A number of things were important," Ackerman said. "We needed more
spectrum for Cingular if we were going to elegantly evolve to
advanced data services ... "It also gave us an opportunity to
increase our coverage. There were 15 of the top 100 markets where we
didn't have coverage, and this deal fills in 12 of those."

--
Best regards, HELP FOR CINGULAR GSM & SONY ERICSSON PHONES:
John Navas <http://navasgrp.home.att.net/#Cingular>

In article <[email protected]>,
John Navas <[email protected]> wrote:

]
>
> In <[email protected]> on Thu, 04 Mar
> 2004 13:01:06 GMT, "Robert M." <[email protected]> wrote:
>
> >Those deep pocketed parent corporations are having fire sales to come up
> >with enough dinero to fund their planned purchase.
>
> >Bell South which previously said it wouldn't need to sell off assests
> >like SBC is doing, is now planning on doing just that.
>
> "BellSouth boss sees merger as local boon"
> <http://www.ajc.com/business/content/...19saporta.html>
>
> Because of the huge numbers involved, the top executives of both
> parents had to be willing to part with assets. BellSouth is
> contributing $15 billion toward the deal, while SBC is contributing
> $21 billion. The deal also includes $5 billion currently in AT&T
> Wireless' coffers.
>
> "We paid a full price," Ackerman acknowledged on the $15-a-share
> offer for AT&T Wireless. "We would not argue that we got a cheap
> price. But we did get a lot for it. The assets that we will get will
> enable us to clearly compete with anyone in the business."

Those are assests the Justice department might make them part with.

>
> >http://story.news.yahoo.com/news?tmp...=/afp/20040304
> >/tc_afp/spain_latam_us_telecom_company_invest_telefonica_bellsouth&sid=96
> >001016
>
> Or <http://makeashorterlink.com/?Z3B126C97>
>
> >http://story.news.yahoo.com/news?tmp...93&e=2&u=/dowj
> >ones/20040304/bs_dowjones/200403040603000307
>
> Or <http://makeashorterlink.com/?Q6C112C97>
>
> Earlier Thursday, local press reports said the company was also
> competing with Mexican wireless service provider America Movil and
> Italy's Telecom Italia Mobile (I.TIM) for those assets.
>
> >They hope to get $6 Billion by selling South American assests (with far
> >more growth potential than AT&T) to Spain's Telefonica.
>
> <http://www.ajc.com/business/content/...19saporta.html>
>
> Ackerman also believes the deal, ... holds great value for Cingular
> and its two parents. SBC Communications owns the remaining 60 percent
> of Cingular.
>
> "A number of things were important," Ackerman said. "We needed more
> spectrum for Cingular if we were going to elegantly evolve to
> advanced data services ... "It also gave us an opportunity to
> increase our coverage. There were 15 of the top 100 markets where we
> didn't have coverage, and this deal fills in 12 of those."
>
> --
> Best regards, HELP FOR CINGULAR GSM & SONY ERICSSON PHONES:
> John Navas <http://navasgrp.home.att.net/#Cingular>

Only a blind apologist would accept a company's press releases as gospel.

"Robert M." <[email protected]> wrote in message news:rmarkoff-

> Those are assests the Justice department might make them part with.

The only assets they may have to give up is the 800 Mhz spectrum in the
handful or areas where AT&T and Cingular owned the A side _and_ the B side
cellular licenses. Even that's not a given, but it's likely. Verizon would
jump on the chance to own that 800 Mhz spectrum, since those are some of the
areas where Verizon is stuck at 1900 Mhz.

When the buyout was furst announced they said no major asset sales would be
required. Within 3 days they backed off that and then admitted they'd sell up
to $8.3 Billion if Justice Department told them to.

Now we find out about another whole class of asset sales. Asset sales to come
up with the money for the purchase.

[POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]

In <[email protected]> on 04 Mar 2004 17:24:32 GMT,
[email protected] (Cell merger) wrote:

>When the buyout was furst announced they said no major asset sales would be
>required. Within 3 days they backed off that and then admitted they'd sell up
>to $8.3 Billion if Justice Department told them to.

You're misconstruing history. Cingular expected no major divestitures (and
still doesn't, AFAIK), but could be wrong, since that will depend on the
government. If it is wrong, Cingular reserves the right to walk from the deal
if divestitures exceed $8 billion. There's no real inconsistency there, as
you would see if you didn't have such an agenda.

> Now we find out about another whole class of asset sales. Asset sales to come
>up with the money for the purchase.

Looks like business as usual to me.

--
Best regards, HELP FOR CINGULAR GSM & SONY ERICSSON PHONES:
John Navas <http://navasgrp.home.att.net/#Cingular>

John Navas wrote:

> [POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]
>
> In <[email protected]> on 04 Mar 2004 17:24:32 GMT,
> [email protected] (Cell merger) wrote:
>
>
>>When the buyout was furst announced they said no major asset sales would be
>>required. Within 3 days they backed off that and then admitted they'd sell up
>>to $8.3 Billion if Justice Department told them to.
>
>
> You're misconstruing history. Cingular expected no major divestitures (and
> still doesn't, AFAIK), but could be wrong, since that will depend on the
> government. If it is wrong, Cingular reserves the right to walk from the deal
> if divestitures exceed $8 billion. There's no real inconsistency there, as
> you would see if you didn't have such an agenda.
>
>
>>Now we find out about another whole class of asset sales. Asset sales to come
>>up with the money for the purchase.
>
>
> Looks like business as usual to me.
>


Lessee, I want to buy my neighbour's old beat-up car because I think it
has potential for becoming a classic. Some people think I'm nuts, but I
make a cash offer despite their misgivings. Another neighbour offers a
higher price, so I increase mine. My offer is accepted and good for
thirty days. Now, I have to figure out a way to a) convince the wife,
and b) get the cash. So I look around the garage, spot several items
that aren't doing much for me, but may still have value to someone. I
advertise them in a local paper and start taking calls from interested
parties. Anybody wanna buy a crusty air compressor? Needs hoses. How
about a spare three-wheel lawn mower? These 'for sale' offers good for
only 29 days.

Yup, business as usual.

--
jer email reply - I am not a 'ten' ICQ = 35253273
"All that we do is touched with ocean, yet we remain on the shore of
what we know." -- Richard Wilbur

[POSTED TO alt.cellular.cingular - REPLY ON USENET PLEASE]

In <[email protected]> on Thu, 04 Mar 2004 19:50:48 -0600, Jer
<[email protected]> wrote:

>John Navas wrote:
>
>> In <[email protected]> on 04 Mar 2004 17:24:32 GMT,
>> [email protected] (Cell merger) wrote:
>>
>>>When the buyout was furst announced they said no major asset sales would be
>>>required. Within 3 days they backed off that and then admitted they'd sell up
>>>to $8.3 Billion if Justice Department told them to.
>>
>> You're misconstruing history. Cingular expected no major divestitures (and
>> still doesn't, AFAIK), but could be wrong, since that will depend on the
>> government. If it is wrong, Cingular reserves the right to walk from the deal
>> if divestitures exceed $8 billion. There's no real inconsistency there, as
>> you would see if you didn't have such an agenda.
>>
>>>Now we find out about another whole class of asset sales. Asset sales to come
>>>up with the money for the purchase.
>>
>> Looks like business as usual to me.
>
>Lessee, I want to buy my neighbour's old beat-up car because I think it
>has potential for becoming a classic. Some people think I'm nuts, but I
>make a cash offer despite their misgivings. Another neighbour offers a
>higher price, so I increase mine. My offer is accepted and good for
>thirty days. Now, I have to figure out a way to a) convince the wife,
>and b) get the cash. So I look around the garage, spot several items
>that aren't doing much for me, but may still have value to someone. I
>advertise them in a local paper and start taking calls from interested
>parties. Anybody wanna buy a crusty air compressor? Needs hoses. How
>about a spare three-wheel lawn mower? These 'for sale' offers good for
>only 29 days.

You're clearly much more knowledgeable about this than the folks running
Cingular, SBC, and BellSouth! If only they had thought to consult you first!
;-)

--
Best regards, HELP FOR CINGULAR GSM & SONY ERICSSON PHONES:
John Navas <http://navasgrp.home.att.net/#Cingular>