AT&T's proposed $944 million acquisition of Centennial Communications likely will close later than expected, AT&T said. The two companies now expect the deal to close early in the fourth quarter. Previously, AT&T had said that the deal likely would close in the third quarter.
AT&T said that, although the applicable waiting period for a Department of Justice review of the deal has expired, the carrier is still in discussions with the department about the acquisition. The deal also still requires approval from the FCC. Centennial shareholders approved the deal in February.
In July, shares of Centennial plunged after concerns that the deal might be hitting snags in the regulatory approval process. At the time, analysts at Stifel Nicolaus & Co. said that they believed the merger would eventually be approved, but that the terms may be reviewed.
In May, AT&T announced an agreement with Verizon Wireless to sell certain wireless assets of Centennial to Verizon Wireless for $240 million, a transaction contingent on the closing of AT&T's acquisition of Centennial.
AT&T's purchase of Centennial will give the nation's No. 2 carrier around 1.1 million of Centennial's customers in Puerto Rico, the U.S. Virgin Islands, the Great Lakes region and in the Gulf Coast.
- see this release
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