AP
Shares of Dobson Communications Corp. were on pace to open at an all-time
high Monday after AT&T Inc. agreed to buy the rural wireless provider for
$2.8 billion.
AT&T said Friday it will pay $13 per share for Dobson, adding 1.7 million
subscribers to its network of 62 million. Dobson shares closed at $11.11
Friday, making AT&T's offer a 17-percent premium. The stock rose $1.44, or
13 percent, to $12.55 in premarket electronic trading.
Analyst Mike McCormack of Bear Stearns approved of the deal.
"Though the acquisition will have limited financial impact on AT&T, we
believe the acquisition makes strategic sense given the reasonable valuation
and lack of network overlap," he said.
JPMorgan analyst Thomas J. Lee said shares of other rural carriers,
including Rural Cellular Corp., SunCom Wireless Holdings Inc. and Centennial
Communications Corp., would rise on the news.
AT&T shares rose 15 cents to $41.65 premarket, up from Friday's close at
$41.50.
Dobson shares reached an all-time high of $11.34 Thursday
Frank Muto
FSM Marketing Group, Inc.
www.SecureEmailPlus.com
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