Verizon Wireless to Buy Price Communications Wireless

BEDMINSTER, N.J., Nov. 16 -- Communications provider Verizon Wireless has agreed to purchase all the assets of Price Communications Wireless, including 41 retail stores, a regional call center and network infrastructure, for a total of $2.06 billion.
Verizon Wireless will either assume or redeem $550 million of Price Communications Wirless' net debt and pay $1.5 billion in Verizon Wireless stock -- valued at the offering price at Verizon Wireless' upcoming initial public offering. The agreement may be called off by either party if Verizon Communications Wireless' IPO does not happen by Sept. 30, 2001. Last month Verizon Communications Inc. and Vodafone Group Plc, Verizon Wireless' parent company, said that Verizon Wireless would hold off on a planned IPO of common stock because of the recent volatility of capital markets.
Price Communications Wireless, a wholly owned subsidiary of Price Communications, operates a wireless business that covers 3.4 million population served in 16 markets throughout Georgia, Alabama, South Carolina and Florida. The deal will expand Verizon Wireless' customer base more than .5 million customers.