Cox Communications Inc to buy AT&T system

NEW YORK, JULY 7: Cox Communications Inc on Wednesday announced plans to buy cable television systems that serve 490,000 customers from AT&T Corp in a deal worth more than $2.8 billion.

AT&T will receive 50.3 million common shares of AT&T that Cox, Atlanta, holds. Cox said the transaction is worth about $2.8 billion, based on AT&T’s closing price Tuesday of $56.625. AT&T will also give Cox about $750 million in other considerations, including cash.

Cox said it will buy AT&T systems serving Tulsa, Okla and Baton Rouge, La. The systems have 316,000 customers in all. Cox will also get AT&T’s 20 per cent stake in a partnership with TCA Cable TV Inc, representing 62,000 customers in Texas, Louisiana and New Mexico. Cox in May disclosed plans to acquire TCA in a $4 billion transaction.