BellSouth buys PCS equity - Sep. 12, 2000

News > Deals

BellSouth PCS buys equity

September 12, 2000: 8:54 a.m. ET

Wireless unit to acquire 44.2% held by others in Carolina PCS for $885M

NEW YORK (CNNfn) - BellSouth Corp.'s wireless subsidiary, BellSouth PCS, said Tuesday it plans to repurchase all equity interest in BellSouth Carolina PCS it does not already own for about $885 million.

BellSouth PCS will buy the 44.24 percent of BellSouth Carolina PCS owned by other parties, including 20 percent held by DukeNet Communications and 10 percent held by Caronet Inc.

BellSouth plans to pay about $20 million for each 1 percent of the company.

DukeNet, a "carrier's carrier" that provides network systems and services to other carriers and Internet service providers, originally paid $106 million for its 20 percent stake.

SBC Communications and BellSouth agreed in April to combine their wireless operations in a joint venture that would reach 70 percent of the nation and own networks in 19 of the top 20 markets.

BellSouth Carolina PCS, founded in July 1996, will become part of the BellSouth SBC venture if the merger clears its final hurdle and is approved by the Federal Communications Commission.

"Our partners wanted liquidity and we wanted to continue to expand on the nationwide wireless joint venture of BellSouth and SBC," Mark Fiedler, chief operating officer of the BellSouth SBC joint venture, said.

Shares of BellSouth (BLS: Research, Estimates) fell $1.38 to $38.62 Monday.

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