Global Signal Set to Buy Sprint's Cell-Tower Business

Sprint Corp. (FON) is close to a deal to sell its cellphone-tower business to Global Signal Inc. (GSL), people familiar with the matter told The Wall Street Journal, in a transaction valued at $1.2 billion.

Sprint has long wanted to sell the 6,500 towers it owns and then lease them back, rather than continuing to own them directly. A deal with Global Signal could be used to help Sprint reduce its debt.

Sprint already operates the country's third-largest cellular carrier with about 17.8 million direct subscribers.

A deal with Global Signal, which could be announced this week, would be sizable for the Sarasota, Fla., tower operator. The company has a market capitalization of about $1.4 billion and owns or manages more than 3,300 wireless towers.

A spokesman for Sprint wouldn't comment on the deal. A Global Signal spokeswoman didn't return a call requesting comment.

Wall Street Journal Staff Reporters Jesse Drucker and Dennis K. Berman contributed to this report.

(END) Dow Jones Newswires "

Posted to the site on 8th February 2005