updated 09:25 pm EDT, Fri June 29, 2007
AT&T to expand coverage
AT&T today announced that it will purchase wireless carrier Dobson Communications for $2.8 billion in cash, which will expand AT&T's own network coverage into rural areas. AT&T will pay $13 per share representing an almost 17 percent premium over Dobson's $11.11 share price as of 4:00 p.m., according to the Wall Street Journal. Dobson, which is based in Oklahoma City, handles wireless services in rural and suburban areas mostly in the Midwest, Southwest, and Alaska to serve around 1.7 million customers. The acquisition will broaden AT&T's cellular coverage, resulting in improved mobile service for iPhone owners in less populated areas.