Thursday, June 2, 2011

AT&T Acquires Convergys' Stake in Cincinnati Cell Partnerships for $320M

AT&T has agreed to acquire Convergys Corporation's holdings in certain "cellular partnerships" located in the Cincinnati metropolitan area for approximately $320 million in cash.

As a result of its spin-off from Cincinnati Bell Inc. in 1998, Convergys received a 34% limited partnership interest in Cincinnati SMSA and a 45% limited partnership interest in Cincinnati SMSA Tower Holdings. Together, these two properties are referred to as the "cellular partnerships."

AT&T is the general partner, managing all the cellular partnerships' business on a day-to-day basis. Convergys does not take part in this management.

Convergys expects the sale to generate net after-tax proceeds of approximately $250 million. The deal is not expected to incur regulatory review and so will be completed in July 2011.