US Govt OKs Cingular Wireless Buying AT&T Wireless

ATLANTA (AP)--The U.S. Department of Justice approved Cingular Wireless LLC's (CIW.XX) $41 billion purchase of AT&T Wireless Services Inc. (AWE) on Monday.

That leaves only Federal Communications Commission approval needed for the deal to close. Company officials expect FCC approval soon, possibly by Tuesday.

The deal, announced in February, would create the U.S.'s largest cell phone company with more than 47 million subscribers. Current market leader Verizon Wireless has about 40.4 million wireless customers.

The Justice Department approval is conditioned upon Cingular divesting AT&T Wireless assets in Oklahoma City and divesting from AT&T Wireless spectrum in Dallas-Fort Worth, Detroit and Knoxville, Tenn., a Cingular spokesman said.

Analysts and company officials have said the deal almost certainly will mean layoffs, though to date none has been announced.

Last week, Atlanta-based Cingular reported that operating profits slipped 5.5% despite gains in both subscribers and revenue. AT&T Wireless, based in Redmond, Wash., posted a 25% drop in third-quarter net income.

Cingular is jointly owned by Atlanta-based BellSouth Corp. (BLS) and SBC Communications Inc. (SBC) of San Antonio.

(END) Dow Jones Newswires "

Posted to the site on 25th October 2004