|AT&T Sets Wireless IPO Terms, Sees $10 Billion Net|
Posted: 29-Mar-2000 [Source: Reuters]
[AT&T's Wireless IPO is expected to be the largest in US history. SEC filings were made public on Tuesday.]
Washington -- "AT&T Corp. (T.N), the No. 1 U.S. long-distance telephone company, said on Tuesday it planned to sell 360 million shares of a tracking stock to represent its wireless voice and data operations, setting an estimated price range of $26-$32 a share for the IPO.
"The issue would represent the largest initial public stock offering, or IPO, in U.S. history. It would net AT&T $10.13 billion based on the terms detailed in an amended prospectus filed with the Securities and Exchange Commission. The terms of the deal, which AT&T first announced in December, were revealed in the SEC filing on Tuesday.
"The company will allocate the first $7 billion in proceeds to the wireless operation, using the funds for expanding its network, pursuing acquisitions as they arise, capital spending and general corporate purposes, the filing said. The remaining proceeds will go toward general corporate purposes at the AT&T common stock group.
"With about 12.2 million customers at the end of last year, AT&T Wireless generated about $7.6 billion in revenue in 1999, the prospectus said. By the end of this year, AT&T Wireless is expected to have a network that will cover more than 70 percent of the U.S. population, including partnership and affiliate markets.
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