AT&T Wireless and Japan’s NTT DoCoMo began operating previously-a...
AT&T Wireless and Japan’s NTT DoCoMo began operating previously-announced alliance to develop next-generation wireless services. NTT DoCoMo bought 16% stake in AT&T Wireless Mon. through acquisition of 406 million shares of preferred tracking stock for $9.8 billion. DoCoMo also…
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bought 5-year warrants to purchase equivalent of additional 41.7 million shares of tracker at $35 per share. Parent company AT&T said it decreased its interest in AT&T Wireless Group by 178 million shares, receiving $20.50 per share from DoCoMo. Remaining 406 million shares that DoCoMo bought came from 228 million newly issued tracker shares at $27 per share. Except for warrants and before AT&T Wireless completes planned spinoff later this year, AT&T said it still had about 70% economic stake in wireless unit. About 14% of economic interest in AT&T Wireless’s operating results will be represented by tracking stock that’s traded publicly, company said. AT&T Wireless reiterated it planned to use $6.2 billion in proceeds from share sale to continue to expand capacity, enlarge footprint, develop wireless Internet projects, invest in other “growth” areas. Parent AT&T plans to use its $3.6 billion part of deal to reduce debt.