Telecom & Wireless
Centennial 100% Premium Buyout Could Ignite Sector (CYCL, T)
Published:
Centennial Communications Corp. (NASDAQ: CYCL) will be trading up huge on a $944 million buyout from AT&T Inc. (NYSE: T). This was a 100% premium-merger, and you have to wonder if the larger telecom giants still have an appetite to consolidate the players if it means they can grow their footprint.
Centennial is being bought to improve wireless coverage for customersin rural areas of the Midwest and Gulf Coast, Puerto Rico, and the U.S.Virgin Islands. Centennial’s 9 million NetPops include the Midwestregion of Indiana, Michigan, and Ohio; and Southeast cluster includedparts of Louisiana, Mississippi, and Texas.
As of May 31, Centennial had 1,092,600 wireless subscribers,and it operated 139 retail outlets in the United States and 77 retailoutlets in Puerto Rico. The $944 million comes to $8.50 per share incash for Centennial holders. It also assigns a per-customer cash valuefor the newest wireless telecom merger as being close to $860.00 beforebacking out the per-customer value for retail locations.
A 100%-premium is hard to not notice, even for a deal this small compared to AT&T’s $159 billion market cap.
Jon C. Ogg
November 10, 2008
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
