Deutsche Telekom said on Monday that VoiceStream, the US mobile phone company it has agreed to buy, had acquired another US firm, Powertel, for $5.89 billion (6.5 billion euros).
The German telecommunications giant said in a statement that the purchase would "substantially expand VoiceStream's GSM mobile coverage in the south east US."
Deutsche Telekom's purchase of VoiceStream has yet to be finalized.
So, in order to facilitate the combination of all three companies, Deutsche Telekom and Powertel had entered into a separate definitive agreement for the German group to offer Powertel shareholders 2.6353 of its shares for each Powertel share held, "subject to certain adjustments".
Based on the closing price of Deutsche Telekom shares on Friday of 44.30 euros or $39.98, each Powertel common share would therefore have a potential value of $105.36.
Based on approximately 55.9 million Powertel shares, Deutsche Telekom would issue some 147.3 million new shares, valuing the transaction at around $5.89 billion, the German group said.
The Deutsche Telekom/Powertel deal would be completed immediately upon finalization of Deutsche Telekom's acquisition of Voicestream. — (AFP)
© Agence France Presse 2000
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