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Convergys agrees sale of minority interest in "cellular partnerships" to AT&TJun 03, 2011 (M2 EQUITYBITES via COMTEX) -- Relationship management solutions provider Convergys Corporation (NYSE:CVG) said yesterday that it has agreed to sell its holdings in the "cellular partnerships" located in the Cincinnati metropolitan area to US communications holding company AT&T Inc (NYSE:T). The purchase price will be approximately USD320m in cash. This transaction includes a 34% limited partnership interest in Cincinnati SMSA and a 45% limited partnership interest in Cincinnati SMSA Tower Holdings, both of which were acquired by Convergys a result of its spin-off from Cincinnati Bell Inc (NYSE:CBB) in 1998. Cincinnati SMSA provides wireless communications in central and southwestern Ohio and northern Kentucky, while Cincinnati SMSA Tower Holdings is a cellular tower holding company for Cincinnati SMSA. Convergys said that it expects this sale to generate net after-tax proceeds of approximately USD250m and the company intends to update its full-year guidance to reflect cellular partnership-related impacts on EBITDA, EPS and free cash flow after the sale closes. Through this transaction AT&T is acquiring the remaining minority interest in partnerships it already controls. The company anticipates no significant impact on its earnings and cash flows. Regulatory approvals are not required and the companies expect the sale to be completed in early July 2011. Comments on this story may be sent to [email protected] |