AT&T to buy wireless assets from Convergys for $320 million

Reuters News
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Posted: Jun 02, 2011 5:58 PM

(Reuters) - Customer relationship company Convergys Corp <CVG.N> plans to sell its holdings in some wireless assets in the Cincinnati metropolitan area to AT&T Inc <T.N> for about $320 million in cash.

Convergys is selling its 34 percent stake in Cincinnati SMSA and the 45 percent limited partnership interest in Cincinnati SMSA Tower Holdings it received at the time of its spin-off from Cincinnati Bell <CBB.N> in December 1998.

The sale, expected to generate net after-tax proceeds of about $250 million, is seen closing early next month.

"Since AT&T is merely acquiring the remaining minority interest in partnerships it already controls, regulatory approvals are not required," Convergys said in a statement.

AT&T expects any impact on its earnings and cash flows from the purchase to be insignificant.

Convergys shares closed at $12.55 on Thursday on the New York Stock Exchange while AT&T shares closed at $30.97.

(Reporting by Saqib Iqbal Ahmed; Editing by Joyjeet Das)