Deciding that it is so stretched that it will have to be more discriminating in collecting cellular franchises, 22% British Telecommunications Plc affiliate McCaw Cellular Communications Inc has decided effectively to trade a seat in the sought-after New York market for some of its less favoured franchises. It signed a definitive agreement to acquire the interest of Metromedia Co in the New York City cellular franchise for $1,900m cash subject to the 45-day right of first refusal held by LIN Broadcasting Corp – for which McCaw is still bidding. And to get back $1,300m of the price, it also signed a definitive agreement to sell its cellular interests in 13 markets in Alabama, Kentucky and Tennessee to Contel Corp’s Contel Cellular Inc for $1,300m cash. The New York agreement would give McCaw 50% of the votes and 45.67% of the equity and the price works out at $275 a pop.
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