Telephone and Data Systems Inc, Chicago-based telecommunications company, has agreed to acquire all of the issued and outstanding shares of common stock of American Paging Inc not already owned by TDS for $2.50 per share in cash. The deal was recommended by a special committee of API’s independent directors and approved by API’s board of directors. The deal awaits FCC approval and is subject to other customary closing conditions as well. TDS currently owns 16.5 million shares of API’s common stock which represents roughly 81.9% of the issued and outstanding shares. Under the agreement, a subsidiary of TDS will commence a tender offer on or prior to February 18 to acquire the API shares. All shares not purchased in the tender offer will be converted into the right to receive $2.50 per share in a second-step merger to be consummated as soon as possible after the tender offer.
