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CNN Live At Daybreak

Mobile Phone Merger: Cingular Wins AT&T Wireless Bidding War

Aired February 17, 2004 - 06:46   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Time for a little "Business Buzz" right now. Cingular is willing to pay big bucks for AT&T Wireless.
Carrie Lee has more live for you from the Nasdaq market site.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.

Of course the stock markets closed yesterday for President's Day. A lot was happening in the business world, though, Cingular Wireless beat out Britain's Vodafone to purchase AT&T Wireless, a deal estimated at $41 billion.

What does this mean for consumers? Well Cingular executives are talking about things like better coverage, improved reliability, enhanced call quality. Keep in mind right now there are six large wireless players in this country. This deal will bring that down to five. And executives have been hoping that the lower number would perhaps ease the heated price competition that we have seen. The average cell phone call down about 36 percent since 2001 in terms of price.

AT&T Wireless shares have gained about 60 percent since Cingular expressed interest earlier last month. Meanwhile, Cingular is a joint venture between SBC Communications and BellSouth. So those are the two stocks to watch there.

Finally, the Walt Disney Company has rejected Comcast's offer last week to take over the company. Disney shares up about 12 percent last week. Comcast shares down about 12 percent. Overall, Carol, Wall Street really liking this Cingular deal, as Wall Street typically does with mergers, because futures are looking very strong for trading this Tuesday morning.

Back to you.

COSTELLO: And that is good news.

Carrie Lee live from the Nasdaq market site.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





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Aired February 17, 2004 - 06:46   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little "Business Buzz" right now. Cingular is willing to pay big bucks for AT&T Wireless.
Carrie Lee has more live for you from the Nasdaq market site.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.

Of course the stock markets closed yesterday for President's Day. A lot was happening in the business world, though, Cingular Wireless beat out Britain's Vodafone to purchase AT&T Wireless, a deal estimated at $41 billion.

What does this mean for consumers? Well Cingular executives are talking about things like better coverage, improved reliability, enhanced call quality. Keep in mind right now there are six large wireless players in this country. This deal will bring that down to five. And executives have been hoping that the lower number would perhaps ease the heated price competition that we have seen. The average cell phone call down about 36 percent since 2001 in terms of price.

AT&T Wireless shares have gained about 60 percent since Cingular expressed interest earlier last month. Meanwhile, Cingular is a joint venture between SBC Communications and BellSouth. So those are the two stocks to watch there.

Finally, the Walt Disney Company has rejected Comcast's offer last week to take over the company. Disney shares up about 12 percent last week. Comcast shares down about 12 percent. Overall, Carol, Wall Street really liking this Cingular deal, as Wall Street typically does with mergers, because futures are looking very strong for trading this Tuesday morning.

Back to you.

COSTELLO: And that is good news.

Carrie Lee live from the Nasdaq market site.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





War>