AT&T Wireless Services Inc, the biggest publicly-traded US mobile-telephone company, plans to sell its stake in Far EasTone Telecom-munications Co (
The sale will occur in two stages, Redmond, Washington-based AT&T Wireless said in a statement. Companies affiliated with closely held Far Eastern Group (
A&T Wireless' sale of its 23 percent stake comes as Far EasTone prepares to buy its smaller tele-coms rival, KG Telecommunications Co (和信電訊) for NT$29.8 billion (US$881.7 million).
This will create a stronger rival to No. 1 Taiwan Cellular Corp (台灣大哥大) and next-largest rival Chunghwa Telecom Co (中華電信) in a market that has more mobile-phone subscriptions than people.
The US company has a strategy of exiting overseas businesses to focus on expanding the North American network.
"They're committed to the US market," said Rick Black, an analyst at Blaylock & Partners LP, who has a "hold" rating on AT&T Wireless shares and doesn't own them. The sale helps "take the focus off international units and puts the money to better use in the US."
In June, AT&T Wireless sold its stake in the Czech Republic's largest wireless carrier for about US$625 million.
Shares of AT&T Wireless fell US$0.14 to US$8.25 at 4pm in New York Stock Exchange composite trading. The stock has more than doubled in the past year. Far EasTone shares rose NT$1.20 to NT$24.10 (US$0.71).
Founding Partner AT&T Wireless was a founding partner of Far EasTone in 1996.
In August, AT&T Wireless said it would have US$62 million in third-quarter pretax costs to write down the value of the investment.
RSS