AT&T Inc (T) has reportedly completed its much anticipated acquisition of Centennial Communications Corp (CYCL), the eighth largest US wireless carrier by subscribers. This follows the recent approvals of the transaction by the US Department of Justice and US telecom regulator Federal Communications Commission (“FCC"). The transaction, which was originally set to complete in second-quarter 2009, is now officially closed.  As per the agreement terms, shareholders of Centennial will receive $8.50 in cash for every share they own, equating to approximately $944 million. Including net debt, the aggregate value of the deal is $2.7 billion. AT&T will take appropriate steps to redeem all of Centennial’s outstanding debts. AT&T expects minimal dilution to earnings and cash flow in 2009 given the upfront integration costs.  The acquisition has expanded AT&T’s wireless coverage to include the rural areas of the Midwest and Southeast regions of the US as ...

T-Mobile USA, the US subsidiary of German telecom giant Deutsche Telekom (DT), has reportedly introduced a new unlimited wireless service plan that comes without any annual service contract. This move represents the company’s latest initiative to counter strong competition from its larger peers in the domestic wireless market.  Under the new service plan, customers can enjoy unlimited voice, text and Web access services for $79.99 per month without entering into any long-term contract. This represents a $20 discount on the company’s standard $99.99 unlimited monthly rate plan for a two-year service contract. Subscribers to the $79.99 monthly plan, however, have to pay more for their cellphone handsets than the regular contract-bound customers.  T-Mobile USA is the fourth largest US wireless carrier with 33.5 million subscribers. However, the company is contending in an increasingly consolidating industry. Verizon (VZ) has emerged as the largest wireless provider in ...

AT&T Inc’s (T) much anticipated acquisition of regional wireless and wireline service provider Centennial Communications Corp (CYCL), has progressed a step further as the US wireless giant has reportedly received a conditional approval of the US Department of Justice (“DOJ").  The acquisition is now subject to the approval of the US telecom regulator Federal Communications Commission. The US antitrust approval is based on fulfillment of specific conditions which requires AT&T to divest certain Centennial assets in eight markets across Louisiana (central and southern) and southwestern Mississippi .  This is due to the fact that the acquisition may potentially hurt consumer interest in these regions. As part of this requirement, AT&T has already committed to sell wireless assets in five of the eight markets to its rival operator Verizon (VZ) for $240 million. AT&T announced its acquisition of Centennial for approximately $2.8 billion (including net debt) ...

T-Mobile USA, the US wireless subsidiary of incumbent German telecom carrier Deutsche Telekom (DT), is set to launch a new wireless service for corporate customers today. The service integrates T-Mobile BlackBerry smartphones with Wi-Fi (wireless broadband) network. T-Mobile USA already markets similar service for residential customers.  The new corporate Wi-Fi service ties up with office PBX system and enables employees to access Wi-Fi network using their BlackBerry cellular phones in the office, which eliminates the need for wireline phones. This will offer meaningful cost savings on international long-distance calls and roaming while providing greater convenience to businesses. To avail the service, enterprises have to pay a flat monthly fee (include provision for unlimited Wi-Fi calls) in addition to the regular mobile tariffs.  T-Mobile USA is contending in an increasingly consolidating industry. Verizon (VZ) has become the number one wireless carrier in the US after its ...

  Incumbent German telecom carrier Deutsche Telekom (DT) is evaluating the acquisition of Sprint Nextel (S), the third largest US carrier. The company has reportedly initiated discussions and may submit a bid in the coming weeks. Deutsche Telekom operates in the US through its subsidiary T-Mobile USA, which is the fourth largest US wireless carrier, with 33.5 million subscribers.   Sprint has a current market valuation of $10.8 billion with a total debt position of approximately $21 billion. In order to finance the potential multi-billion dollar deal, Deutsche Telekom may need to seek funding from its shareholders, including the German government, which holds 32% stake in the company. Deutsche Telekom is pursuing several initiatives to revive its struggling business operations across Britain and the US. The company has recently announced the merger of its British subsidiary T-Mobile UK with France Telecom’s (FTE) Orange UK ...

Verizon (VZ), the largest US wireless carrier, has increased its quarterly dividend by 3.3% to 47.5 cents per share, equating to approximately 6.3% yield. Annualized, this increases the company’s dividend to $1.90 per share, reflecting 6% growth from the current dividend of $1.84 per share. The quarterly dividend is payable on November 2, 2009, to the shareholders of record as of October 9, 2009. This represents the third consecutive year Verizon has increased its dividend payout in September. The wireless giant raised its quarterly dividend by 7% in September 2008 to 46 cents per share, increasing annual payout by 12 cents per share to $1.84 per share. Verizon remains committed to offer incremental returns to its shareholders leveraging  a heathy free cash flow (cash flow from operations minus capital expenditures). The company reported free cash flow of $6 billion in first-half 2009, reflecting a $1.8 billion ...

Verizon - Net Dips, Alltel Boosts Topline   Verizon (VZ), the largest US wireless carrier by subscribers, reported results for the second quarter of 2009 on Jul 27, 2009. Results were highlighted by healthy gains across strategic growth areas such as wireless, broadband Internet and video. Reported revenue came in line with consensus and our expectations increasing 11.3% year over year to $26.9 billion, driven by contribution from Alltel Corp acquired in early 2009. However, reported earnings per share (EPS) attributable to the company fell short of our estimates, declining 21.2% to $0.52 from $0.66 reported in the year ago quarter, largely due to rising costs and declining wireline businesses. On an adjusted basis, EPS fell to $0.63 from $0.67 registered in the prior-year quarter, beating the consensus. Total wireless revenue increased 27.7% year over year to $15.5 billion (58% of the total revenue), increasing 29.6% ...

Buy/Sell/Hold ETF Zooms 42%; Magna Reports 3Q Loss, Slashes Dividend; U.S. Factory Orders Down 2.5%; Walgreen Same-store Sales Rise 2%, Yahoo Shares Upgraded; Oil Rises 12% on Production Cuts; Archer Daniels Midland Doubles Profit; UBS Turns Profit; Verizon Cleared to Take Over Alltel.

The iShares MSCI Brazil Index (EWZ), an exchange-traded fund (ETF) that was the topic of the popular “Buy, Sell or Hold” feature a week ago Monday (Oct. 27), surged another 9.82% yesterday (Tuesday) and is now up 42% in the six days since Contributing Editor Horacio Marquez rated the ETF as a “Buy” in his column. The shares, which were recommended at $29.94, zoomed $3.81 each, or 9.82%, to close at $42.60, and have now gained $12.66 a share, or 42% since they were recommended by Marquez. They traded as high as $43.35 yesterday – an increase of 45% from their recommendation ...

Buy/Sell/Hold ETF Zooms 42%; Magna Reports 3Q Loss, Slashes Dividend; U.S. Factory Orders Down 2.5%; Walgreen Same-store Sales Rise 2%, Yahoo Shares Upgraded; Oil Rises 12% on Production Cuts; Archer Daniels Midland Doubles Profit; UBS Turns Profit; Verizon Cleared to Take Over Alltel.

The iShares MSCI Brazil Index (EWZ), an exchange-traded fund (ETF) that was the topic of the popular “Buy, Sell or Hold” feature a week ago Monday (Oct. 27), surged another 9.82% yesterday (Tuesday) and is now up 42% in the six days since Contributing Editor Horacio Marquez rated the ETF as a “Buy” in his column. The shares, which were recommended at $29.94, zoomed $3.81 each, or 9.82%, to close at $42.60, and have now gained $12.66 a share, or 42% since they were recommended by Marquez. They traded as high as $43.35 yesterday – an increase of 45% from their recommendation ...

CenturyTel Inc. (CTL) will acquire rival Embarq Corp. (EQ) in an $11.6 billion deal that could kick-start a flurry of mergers among rural-regional telephone carriers. The deal should be good for the two companies, said Jeff Kagan, an independent analyst who is well known for his coverage of the telecom sector.

“There has been a lot of talk recently about Embarq wanting to be acquired,” Kagan told MarketWatch.com. “However, the financial crisis that is on the front page every day made finding a partner difficult. That may have lowered the price Embarq hoped to get. CenturyTel saw an opportunity and jumped in to acquire Embarq. Timing was on CenturyTel’s side in this deal.”

The all-stock deal – announced yesterday (Monday) – calls for CenturyTel to pay $5.8 billion for Embarq, and to assume $5.8 billion of that company’s debt, Network World

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