US Cellular jumps on T-Mobile's $4.4 bln buyout

Telephone and Data Systems

28/05/2024 13:17

** Shares of regional wireless carrier United States
Cellular  USM.N  surge 14% to $48.99 premarket
    ** T-Mobile  TMUS.O  to substantially buy all of co's
wireless operations in a deal valued at $4.4 bln 
    ** TMUS to pay in a combination of cash and up to $2 bln of
assumed debt thorough an exchange offer to be made to some of
USM's shareholders 
    ** TMUS to get USM's customers, stores and 30% of spectrum
assets
    ** Telephone and Data Systems  TDS.N , which holds 83% stake
in USM, to receive proceeds in proportion to its ownership;
shares jump 17.2% to $22 premarket
    ** Deal expected to close in mid-2025 
    ** USM stands at a market cap of $3.65 bln as of Friday's
close, with stock gaining 3.5% YTD

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))