AT&T to buy Verizon assets for $2.35 billion

BEIJING, May 11 (Xinhuanet) -- ATT Inc. will buy assets of Verizon Wireless for 2.35 billion U.S. dollars in cash and will sell some Centennial Communications Corp assets to Verizon Wireless for 240 million dollars.

ATT said Friday it will gain network assets of Verizon Wireless in 79 mainly rural areas. It was required to dispose of some assets after it agreed to purchase Centennial Communications in November 2008.

Verizon Wireless will gain network assets and 120,000 subscribers in five areas. It was required to sell some overlapping assets after purchasing Alltel (NYSE: AT).

ATT said it expects the network integration costs to result in an earnings per share dilution of 0.06 dollar per share in the first year after closing, with additional planned capital investments of about 400 million dollar over 2009 and 2010.

The deal is expected to close in the fourth quarter of 2009, contingent on regulatory approval, ATT said.

"This transaction will complement our existing network coverage, particularly in rural areas," said Ralph de la Vega, president and chief executive of ATT Mobility and Consumer Markets in a statement.

Verizon now expects to buy former Centennial wireless properties, including licenses, network assets and nearly 120,000 subscribers in five service areas in Louisiana and Mississippi.

Verizon Wireless is owned by Verizon and Britain's Vodafone Group Plc (VOD.L) (VOD.N).

(Agencies)