ARC Associates ("ARC"), a specialist investment banking and advisory firm to the TMT, financial services and property sectors, acted as a financial advisor to Sonera, an international forerunner in mobile communications, for its acquisition of 8.8 million shares of VoiceStream Wireless Corporation ("VoiceStream") for $500 million.
This transaction occurred as part of Sonera's strategy to invest in a nation-wide U.S. GSM network. Sonera agreed to invest an additional $500 million in VoiceStream at the completion of the merger of VoiceStream and Onmipoint.
Sonera announced that it had approved the merger of Aerial with VoiceStream Wireless Corporation ("VoiceStream"), on 20 September 1999. In November 1999, Sonera agreed to invest an additional $230 million into Aerial prior to completion This merger will effectively consolidate three of the four publicly traded U.S. GSM regional wireless operators into one company, as VoiceStream at present is in the process of merging with Omnipoint Corporation.
In a separate transaction on 15 September 1999, Sonera completed the acquisition of Ericsson Inc.'s equivalent 9% shareholding in Powertel, Inc, the fourth publicly traded U.S. GSM wireless operator, for $123 million.
Sonera is an international leader in mobile communications, mobile-based services and applications which employs more than 11,200 people. By combining its expertise in mobile communications, the Internet and service provision, Sonera aims to develop into a global communications operator and provider of transaction and content services.
ARC Associates is a specialist investment banking and advisory firm to the telecommunications, media, technology, financial services and property sectors.
Contact:
John Allen, Chairman
ARC Associates
+ 44 (0) 20 7614 4000