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TDS cancels plans to buy 100% of U.S. Cellular

U.S. Cellular Corp.’s parent company, Telephone and Data Systems Inc., is no longer considering making an offer to acquire the portion of the carrier’s stock that it doesn’t already own.
TDS had said in February that it might make an offer to issue shares of TDS in exchange for those of U.S. Cellular, in order to make the regional wireless operator a wholly owned subsidiary. TDS currently owns 80.7 percent of U.S. Cellular.
However, the company now says that the current exchange ratio between the two stocks doesn’t appropriately recognize their relative value, and the company wouldn’t consider the transaction on “uneconomic terms.” U.S. Cellular currently trades at nearly $70 per share, while TDS stock is valued at about $55 per share.
Both stocks were down slightly after TDS announced that it was terminating consideration of the acquisition-though the company did note that it could change its mind in the future.


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