American Tower To Pay $800 Mln For Towers

BOSTON (Reuters) - American Tower Corp. (NYSE:AMT - news) said Sunday it would buy the rights to 2,100 communications towers from AirTouch Communications Inc., a unit of the world's largest wireless company Vodafone AirTouch Plc., in a deal that includes $800 million cash.

The transaction, which should close in the first quarter of 2000, will provide American Tower with sublease rights to a significant network of towers covering most of AirTouch's markets.

The two companies also entered a three-year agreement for 400-500 new build-to-suit communications towers.

American Tower, an independent owner and operator of wireless communications sites, will pay AirTouch $800 million in cash plus a five-year warrant to buy 3 million American Tower shares at $22 a share.

That is just above American Tower's current market price of $21.75 but below the 52-week high of $30.25.

AirTouch said the deal will allow it to reallocate capital to core business assets, increase future capital efficiency and improve network deployment options.

In June, American Tower said it would pay $205 million in cash and debt to buy wireless tower company UNIsite Inc. American Tower now operates more than 4,000 towers including 185 broadcast sites.

Shares of American Tower closed down 25 cents to $21.75 Friday on the New York Stock Exchange, off a 52-week high of $30.25, but up from a low of $13.25. Vodafone shares closed at 179.1179 sterling in London Friday.