AT&T to buy Centennial for $944 Million

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AT&T has announced that it would buy Centennial Communications for $944 million on Friday (US Eastern Time), giving the company an additional 1.1 million customers to its 74.9 million customers, and will improve the coverage of AT&T in the Midwest, Southeast, Puerto Rico and the Virgin Islands.

The deal, announced after the markets were closed, would see Centennial stockholders getting $8.50 a share, a premium of 121 percent over the closing price of $3.84 – with shares jumping to $7.90 in after hours trading. The deal is expected to close in second-quarter of next year.

The deal is seen as a response to the acquisition of Alltel by Verizon Wireless, which was recently approved by the government.

Source: NY Times