NEW YORK-The stakes for Sprint Corp.’s 6,500 cell-phone towers rose as at least four bidders have offered proposals to buy them in an auction that could bring in as much as $1.2 billion, according to a report in The Wall Street Journal.
Liberty Media Corp. and Global Signal Inc. are two of the front runners for the towers, said the report.
Sprint has been trying to get rid of its tower assets because it regards them as non-strategic, hoping either to sell them or lease them. The carrier could slash its debt with the proceeds. However, the carrier may choose to keep the towers if the price isn’t right.
“There are a number of interested parties, with a number of interesting ideas,” Sprint spokesman Nick Sweers was quoted as saying. “We’re still evaluating the asset as to whether we’d keep it or sell it.”
Banks are ready to back the tower companies for up to 10 times their earnings before interest, taxes, depreciation and amortization, said the Journal.
Liberty is believed to be willing to exchange its stake in Sprint for its tower business. Liberty’s chief executive, Robert Bennett, said it found the idea attractive.
The auction is under the control of Citigroup Inc. and Banc of America Securities.
