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Technology / AI and automation

McCAW TO BUY NEW YORK CELLULAR STAKE FOR UKP1,900m, SELL OTHERS

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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CBR Staff Writer

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