Thanks Mr Wiggles. Cingular Wireless, the nation"s No. 2 mobile phone provider, has agreed to acquire third-largest AT&T Wireless for more than $40 billion, a deal that could create the nation"s largest cellular subscription base, the company announced Tuesday.
The deal, confirmed after the British company Vodafone Group PLC said it had withdrawn from the two-way bidding war, creates a combined company with a potential 46 million subscribers, Cingular said Tuesday in announcing the agreement.
The current market leader, Verizon Wireless, reported 37.5 million subscribers in its quarterly earnings report last month.
"This is great news for America"s wireless users," said Stan Sigman, president and CEO of Atlanta-based Cingular in confirming his company"s winning bid, which is subject to the approval of AT&T Wireless shareholders and federal regulatory authorities.
Cingular, a joint venture between SBC Communications Inc. and BellSouth, said its winning offer was $15 a share, or about $41 billion.
"This combination is expected to create customer benefits and growth prospects neither company could have achieved on its own and will mean better coverage, improved reliability, enhanced call quality and a wide array of new and innovative services for consumers," Sigman said.