AT&T completes $945 Million Centennial buy
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Bangalore: AT&T has completed its $945 million purchase of U.S. regional mobile operator Centennial Communications, one day after receiving federal approval for the merger. The move marks the strengthening of its network coverage in Puerto Rico and the U.S. Midwest and Southeast. The Federal Communications Commission has conditionally given its consent for the merger, under which Centennial stockholders will receive $8.50 a share. AT&T will also take on about $2 billion in debt for the company. The conditions laid down by the FCC include a settlement with the Justice Department, under which the companies will sell Centennial's wireless licenses and assets in eight areas in Louisiana and Mississippi. The licenses will be sold to one purchaser in each region to maintain competition. Centennial had 893,000 mobile customers, in mainly rural areas of Indiana, Louisiana, Michigan, Ohio and Texas as well as in Puerto Rico and the U.S. Virgin Islands. AT&T will also have to pledge to limit contact with Latin American operator America Movil. FCC Commissioner Michael Copps concurred in the decision to approve the merger but cautioned that concentration of telecommunications companies doesn't always benefit consumers. "Too many rural areas have been abandoned when the marriage didn't produce the big company profits sought by the market," said Copps in a statement. "The addition of Centennial will enhance AT&T's assets in wireless - a strategic priority and one of our biggest growth drivers," said Ralph de la Vega, President and CEO of AT&T Mobility and Consumer Markets. AT&T is likely to place its products and services at Centennial's locations by January 2010 and take over Puerto Rico services later in the year.

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