Monday, September 14, 2009

AT&T and Centennial - "we're still tryin!" (T, CYCL)

AlphaNinja - 10months after AT&T (T) announced it would purchase Centennial Communications (CYCL) and their 1.1million wireless subscribers, the government has yet to bless the deal, pushing the close date into the fourth quarter.

"The acquisition was approved by Centennial's stockholders in February 2009, but remains subject to approval by the Federal Communications Commission and to other customary closing conditions. The applicable waiting period for the Department of Justice review has expired; however, the parties are still discussing the transaction with the Department. Both AT&T and Centennial remain committed to closing the transaction, pursuant to the terms of the agreement, as soon as possible."

Centennial shares trade at $7.75, about 8% below the $8.50 that AT&T has offered. The worries are that any intervention by the Department of Justice or FCC may cause MaBell to reconsider the offer, or at least the price.

No comments:

Post a Comment