Powertel Sold to Deutsche Telekom in $7.1B Deal

Powertel was sold to Deutsche Telekom in a massive $7.1 billion deal. This significant transaction marked a major shift in the company's ownership and direction.

Powertel was a major player in the telecommunications industry, and its sale to Deutsche Telekom was a major coup for the German company.

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Deutsche Telekom is acquiring Powertel in a $5.9 billion deal, with the company also assuming $1.2 billion in debt.

Powertel's network covers 12 southeastern states, home to 25 million people, and is based on the Global System for Mobile Communications (GSM) standard.

The deal values each Powertel share at $105.36, a nearly $20 premium on the stock's Friday closing price.

Major Powertel shareholders have agreed to vote in favor of the transaction.

Powertel had 727,000 customers and year-to-date revenues of $212.3 million as of June 30.

If the Deutsche Telekom/Voicestream deal fails, Voicestream will offer 0.65 to 0.75 of its shares for each share of Powertel, valuing the transaction at $85 a share.

Deutsche Telekom will give Powertel shareholders 2.6353 Deutsche Telekom shares for each share of Powertel common stock they hold.

The German company expects to close the Powertel deal immediately after it completes the acquisition of Voicestream.

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Deutsche Telekom AG is making a significant move into the US wireless market by acquiring Powertel Inc.

The company will assume Powertel debt of $1.2 billion in addition to the $5.9 billion acquisition price.

Powertel's network covers 12 southeastern states and serves 727,000 customers.

Deutsche Telekom expects to close the Powertel deal immediately after it completes the acquisition of Voicestream, another US wireless operator.

Broaden your view: NextWave Wireless

Paratus Zimbabwe has just struck a major deal with PowerTel to launch a new high-capacity national fiber network across Zimbabwe. This partnership will create a new long-distance fiber network across Zimbabwe, providing cross-border links to neighboring countries.

The first phase of the roll-out will connect Plumtree, Bulawayo, and Livingstone within the next six months. This will be a major step forward in Zimbabwe's digital transformation.

Paratus Zimbabwe will be offering an unmatched service through the Paratus Group's quality network, bridging gaps between neighboring countries and strengthening their contiguous network offering.

Deutsche Telekom is making a big move in the US wireless market with a $7.1 billion deal to acquire Powertel.

The company will acquire Powertel for $5.9 billion in cash, plus assume $1.2 billion in debt.

Powertel's network covers 12 southeastern states, home to 25 million people, and is based on the GSM standard widely used in Europe.

The deal values each Powertel share at $105.36, a nearly $20 premium on the stock's Friday closing price.

Powertel shareholders will receive 2.6353 Deutsche Telekom shares for each share of Powertel common stock they hold.

Deutsche Telekom expects to close the Powertel deal immediately after it completes the acquisition of Voicestream.

If the Deutsche Telekom/Voicestream deal fails, Voicestream has separately signed a deal to acquire Powertel.

The purchase will give Deutsche Telekom 727,000 customers in the southeastern United States.

Deutsche Telekom will also assume about $1.25 billion in debt if it acquires Voicestream.

The deal has already been blessed by major Powertel shareholders.

Major shareholders of Powertel and VoiceStream that together own more than 50 percent of the outstanding shares of each company have agreed to vote in favor of the transactions.

The acquisition will give Deutsche Telekom coverage of 250 million people and operations in 24 out of the 25 largest markets in the US.