AirTouch to Buy Stakes From U.S. Cellular

AirTouch Communications Inc. will buy stakes owned by U.S. Cellular Corp. and its parent, Chicago-based Telephone & Data Systems Inc., in several cellular markets for about $246.3 million in cash and stock, the companies said. San Francisco-based AirTouch will issue 5 million shares and pay $50 million in cash to U.S. Cellular and Telephone & Data. AirTouch will get a stake in cellular systems in Seattle; Tucson; Duluth, Minn.; and rural areas in Arizona, Colorado and Idaho. Telephone & Data will get about 1 million AirTouch shares and pay U.S. Cellular about $20 million to end a purchase agreement between the companies. U.S. Cellular will keep 4 million AirTouch shares and the $50 million, the companies said. On the NYSE, AirTouch shares fell 50 cents to close at $38.75; U.S. Cellular shares rose $1 to $33.75; and Telephone & Data shares rose $1.38 to $45.31.