Omnipoint to Buy East/West Communications

Omnipoint Corp., which sells wireless phone services in the Midwestern and Eastern U.S., agreed to buy East/West Communications Inc. for about $121 million in stock and cash to enter the Los Angeles market. The news sent East/West shares climbing, to close up $11.50 at $24.50 in over-the-counter trading. Omnipoint said it bought about 6% of East/West shares for $3 million and will swap preferred stock equal to 1.77 million Omnipoint shares for the rest. The exchange values East/West at about $26.82 a share. Omnipoint also will take on $23 million in debt. Rye, N.Y.-based East/West holds licenses covering Los Angeles and Santa Barbara; Washington; Reno; and Sarasota, Fla. Shares in Bethesda, Md.-based Omnipoint rose $4.06 to close at $75.06 in Nasdaq trading.