AWE considers Cincinnati Bell Wireless stake sale

[jones]

AWE considers Cincinnati Bell Wireless stake sale
Thursday July 29, 5:21 pm ET

NEW YORK, July 29 (Reuters) - AT&T Wireless Services Inc. (NYSE:AWE - News), the No. 3 U.S. mobile provider, said on Thursday it is considering selling its 19.9 percent stake in the wireless business of Cincinnati Bell Inc.

The stake is valued at about $140 million and a sale could help AT&T Wireless win regulatory approval this year for Cingular Wireless' proposal to buy it for $41 billion, according to Banc of America analyst David Barden.

"We are evaluating our ownership postion in CBW," said AT&T Wireless spokesman Peter Rowe, referring to an ownership stake in Cincinnati Bell Wireless LLC which dates back to 1993.

The comments come a day after Cinncinati Bell, a provider of fixed-line and wireless telephone services in three U.S. states, said it was in talks with AT&T Wireless and Cingular about their future relationship.

AT&T Wireless and Cincinnati Bell have an agreement that lets their customers roam onto the other's services to bolster both companies' network coverage.

Chief Executive Jack Cassidy told analysts during a quarterly conference call on Wednesday that Cincinnati Bell has the right of first refusal if AT&T Wireless wants to sell the stake -- giving it the first shot at buying the stake.

"We are pleased with our progress so far, and believe we are nearing a resolution, but have nothing specific to announce at this time," Cassidy said on Wednesday.

[Etorres777]

I don't think they should sell. Leave as is. That's just my opinion. Will it make the merger go through faster or something? If yes, or no, why?

[agentHibby]

The DOJ might see too much controll, but I don't think that is the case since Verizon is in that area.