AT&T to buy Centennial for $944 million

Dallas-based AT&T said the deal will help expand its wireless coverage in areas of the Midwest and Southeast as well as Puerto Rico and the U.S. Virgin Islands. Centennial has about 1.1 million wireless customers.

The company said Centennial stockholders will receive $8.50 per share, more than double Centennial's Friday closing stock price of $3.84. Including debt, AT&T values the deal at $2.8 billion.

The transaction still needs approval from regulators and Centennial shareholders, but AT&T said it hopes to close the deal in the second quarter of 2009.

AT&T said Centennial's largest shareholder, the New York private equity firm Welsh, Carson, Anderson & Stowe, has agreed to vote in favor of the transaction.

Shares of Wall, N.J.-based Centennial rose $4.01 to $7.85 in after-hours electronic trading, having closed earlier up 37 cents at $3.84. In the past 52 weeks, shares have ranged between $1.80 and $10.03. AT&T shares closed the regular session up $1.01, or 3.9 percent, at $27.