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By Malcolm Spicer, [email protected]
Nothing like a $10 billion cash infusion to help AT&T Wireless (AWE) pay for its network upgrade and new spectrum licenses. Investors, however, weren't bowled over by NTT DoCoMo's cash infusion into the U.S. wireless carrier.
Following through on plans announced in December, Japan's NTT DoCoMo on Monday paid $9.8 billion for a 16 percent stake in Redmond, Wash.-based AT&T Wireless. In addition, NTT DoCoMo secured five- year warrants to buy 41.7 million more shares of AT&T Wireless tracking stock at $35 a share.
AT&T Wireless' parent company, AT&T (T), reduced its interest in the carrier by 178 million shares and received $20.50 per share from NTT DoCoMo. The balance of the 406 million shares NTT DoCoMo acquired came from newly issued shares of AT&T Wireless tracking stock priced at $27 a share.
AT&T Wireless said it will use $6.2 billion of NTT DoCoMo's investment to expand its existing capacity for voice services by building a GSM network, while continuing to operate...