Affiliated Publications to Spin Off Cellular Unit

Affiliated Publications Inc., publisher of the Boston Globe and Billboard magazine, announced a major restructuring Thursday that would include the spinoff of its holdings in an unprofitable cellular telephone business.

Separately, British Telecommunications PLC announced in London that it had agreed to pay roughly $1.5 billion for a 22% stake in the cellular business, McCaw Cellular Communications Inc. of Kirkland, Wash.

Affiliated owns about 43% of McCaw, the nation’s largest cellular telephone operator, which has suffered losses in recent years during the start-up phase of its operations.

Wall Street analysts said the restructuring would benefit Affiliated by separating its profitable publishing operations from the troubled cellular business, which has dragged down its stock price. But they also called the British Telecom investment a strong expression of faith in the future of the cellular operations.

Affiliated stock rose $2.375 a share to $40.625 in composite trading Thursday on the New York Stock Exchange. McCaw jumped $5.50 to close at $34.50 a share in national over-the-counter trading. The prices of many other cellular issues also rose in reaction to the British Telecom announcement.

Under the restructuring, which requires approval from shareholders and federal regulators, Boston-based Affiliated would split into two parts.