T-Mobile said Monday that it’s reached deals to buy spectrum licenses from Verizon Wireless for $2.37 billion in cash, allowing it to improve certain kinds of cellular service in markets across the United States.
The agreements also include the transfer of other kinds of spectrum licenses from
T-Mobile to Verizon Wireless that the companies value at about $950 million.
The deals, combined with
T-Mobile’s existing holdings, will give T-Mobile low-band spectrum in nine of the top 10 U.S. markets.
Low-band spectrum boosts cellular coverage inside buildings and in rural areas. It also has the ability to travel greater distances than high-band spectrum, making it a more efficient way to provide coverage at the edge of cities and in less densely populated areas.
Combined with T-Mobile’s existing holdings, the low-band spectrum will cover about 158 million people in U.S. markets including New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington and Detroit.
T-Mobile US, the No. 4 U.S. carrier, is owned by Germany’s Deutsche Telekom. It said it plans to roll out service and compatible phones as early as the fourth quarter of 2014. The deals are expected to close in mid-2014 and remain subject to regulatory approvals.
T-Mobile US shares rose 3.7 percent to close at $33.48.
— Associated Press
Men’s Wearhouse took its fight to buy Jos. A. Bank Clothiers directly to shareholders by raising its bid and beginning a cash tender offer that would value the suit retailer at $1.61 billion.
The $57.50-a-share offer, higher than a previous bid and a 38 percent premium to the closing price on Oct. 8, expires on March 28, Houston-based Men’s Wearhouse said Monday in a statement. Jos. A Bank said it will consider the bid and that shareholders should take no action before it makes a recommendation to them by Jan. 17.
Shareholders will decide whether the 5.7 percent premium to last week’s closing share price is enough to settle the struggle between the retailers, which began when Jos. A. Bank approached its competitor with an offer of $2.3 billion. Men’s Wearhouse rejected that bid, which was disclosed Oct. 9, and then made its own $1.54 billion proposal for Jos. A. Bank.
Jos. A. Bank jumped 4.5 percent to close at $56.87, and Men’s Wearhouse rose 2.2 percent to close at $51.68.
Jos. A. Bank pounced in October at a moment of turmoil for Men’s Wearhouse after it removed founder George Zimmer as executive chairman over strategy disagreements in June. Both companies have said that a combination of the two largest U.S. retailers of their kind would yield savings and boost profit margins. Men’s Wearhouse also has a lucrative tuxedo-rental business that could be expanded to Jos. A. Bank’s more than 600 stores.
— Bloomberg News
● Samsung Electronics said its fourth-quarter operating profit declined 6 percent over a year earlier. The South Korean company said in a Tuesday earnings preview that its operating profit is estimated at $7.8 billion for the final three months of 2013. The result was lower than analysts’ forecast. Sales rose 5 percent to $55.4 billion for the October-December period. Analysts said Samsung’s business making Galaxy smartphones and Galaxy Gear smartwatches was not as lucrative as before because of higher marketing costs.
● AT&T announced that it’s setting up a “1-800” service for wireless data. Web sites that pay for the service will be toll-free for AT&T’s wireless customers, meaning the traffic won’t count against a user’s monthly allotment of data. It’s the first major cellphone company to create a comprehensive service for sponsored wireless access in the United States.
● Service industries unexpectedly grew at a slower pace in December, suggesting that some parts of the U.S. economy are improving in fits and starts. The Institute for Supply Management’s non-manufacturing index fell to a six-month low of 53, from 53.9 in November, the Tempe, Ariz.-based group reported. Readings above 50 indicate growth in the industries that make up almost 90 percent of the economy.
● Microsoft has reached an agreement to acquire Herndon-based software firm Parature for an undisclosed amount, according to the company. The deal is expected to close over the next few days. With about 100 employees, Parature develops software that businesses use to manage customer service. Its newest software, Parature Social Monitor, lets brands aggregate customer comments and questions on social media sites such as Twitter and Facebook.
● The price of Bitcoin shot up past $1,000 after Zynga, an online gaming company, announced that it would test using the digital currency as payment. Bitcoin, the volatile unregulated currency, hit a high of $1,093 on the Mt. Gox online exchange, a major Bitcoin trading exchange, before retreating to about $1,000 Monday morning. In an announcement posted on the Web site Reddit over the weekend, Zynga said it would accept Bitcoin as payment for “FarmVille 2,” “Castleville” and five other games.
— From news services
● 8:30 a.m.: International trade data for November released.