Suncom backs out of Urban Comm deal

[Fire14]

SunCom Terminates Agreement to Purchase Urban Comm

August 17, 2005 | 11:19 AM

SunCom Wireless, Inc., the primary operating subsidiary for SunCom Wireless Holdings, Inc., has announced that under the terms of a stock purchase agreement, it has exercised its termination right to cancel the planned purchase of Urban Comm - North Carolina, Inc. ('Urban') for $113 Million. The agreement, which was announced on October 28, 2004, called for SunCom to purchase all of the outstanding stock of Urban, whose assets include FCC wireless licenses in 20 Basic Trading Areas ("BTAs") in North Carolina, South Carolina and Virginia.

SunCom Wireless, based in Berwyn, Pennsylvania, is licensed to provide digital wireless communications services in an area covering 14.3 million people in the Southeastern United States and 4.0 million people in Puerto Rico and the U.S. Virgin Islands.

[agentHibby]

Be interesting to see who will buy it now.

I think most people around here want T-Mobile.
Cingular could buy it, but they probably do not need to.
US Cellular may buy, but it will not be easy to come up with over $100 million.
I doubt Alltel will be thinking about this.
Sprint might buy since they don't have the much airwaves.
Verizon could buy the rest of UrbanComm and swap what they don't need for markets they do need airwaves or network.

Suncom not comming up with the cash they need is showing that they still going down a downword path.