Cingular wins bidding war for AT&T Wireless
ATLANTA, Georgia (CNN) -- After winning a bidding war with rival Vodafone, Cingular Wireless on Tuesday announced it will purchase AT&T Wireless in a deal estimated at about $41 billion.
"This is great news for America's wireless users," Stan Sigman, president and CEO of Cingular Wireless, said in a statement. "By combining the strengths of these two companies we expect to accelerate the availability of advanced wireless services for consumers.
"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."
The combined company would have 46 million customers in 49 states and would cover 97 of the nation's top 100 markets.
The combined 2003 annual revenues of the two companies would have exceeded $32 billion, Cingular's statement said.
At about the same time, Vodafone said it had pulled out of negotiations for AT&T Wireless.
"On 17 February 2004, Vodafone withdrew from the auction when it concluded that it was no longer in its shareholders' best interests to continue discussions," a statement said.
"Vodafone remains committed to its existing position in the U.S. market with its successful partnership in Verizon Wireless."
Vodafone owns a 45 percent stake in Verizon Wireless.
Cingular Wireless is a joint venture between SBC Communications and BellSouth.
