Verizon Wireless Files $5 Billion IPO

Verizon Wireless filed with the
Securities and Exchange Commission
Thursday to raise $5 billion in an initial public offering.

The IPO, which had been expected, is the largest since AT&T Wireless
raised $11.5 billion in April in the largest U.S. debut of all time,
according to industry reports. The new company will be competition for AT&T
Wireless , Sprint Corp. , Nextel
Communications Inc. and VoiceStream Communications
.

Prior to the offering, Verizon Wireless is 55-percent-owned by Verizon
Communications through its hold on the Class B shares and 45-percent-owned
by Vodafone, which controls the Class C stock.

Verizon Wireless is offering Class A Common Shares. Lead underwriters of
the deal are Goldman Sachs and Merrill Lynch & Co.

The number of shares, their price range and a stock exchange have not yet
been released.

Verizon Wireless is the largest wireless provider in the U.S., boasting
more than 25 million wireless phone customers and nearly 4 million paging
customers. The company is comprised of the assets of Bell Atlantic Mobile,
AirTouch Cellular, PrimeCo Personal Communications, AirTouch Paging and GTE
Corp.

According to the filing, Verizon Wireless plans to use the net proceeds
for general corporate purposes, including capital expenditures to build its
network, acquisition of additional spectrum and wireless licenses and other
wireless assets.

Verizon Wireless Inc. will be a holding company whose sole asset will be
partnership interests in the Verizon Wireless partnership and whose sole
business will be to act as the managing general partner of the partnership.

The Verizon Wireless partnership includes the United States wireless
communications operations of Verizon Communications. The shares will be
issued and sold by Verizon Wireless Inc., which will invest the proceeds in
the Verizon Wireless partnership.

The stock registration comes the morning after Verizon Communications
ended a highly publicized, 18-day strike, which initially included 87,000
workers.

In its recently released second quarter revenue reports, Verizon
Communication’s profits rose to $4.91 billion, or $1.79 a share, compared
with $1.94 billion, or 70 cents a share, a year ago. Second-quarter revenues
rose 15.7 percent to $16.79 billion, with revenues increasing almost 32
percent.

Verizon also said it expected revenues to grow about 8 to 10 percent a
year and its 2000 earnings to be $2.90-$2.94 a share.

Shares of Verizon rose 7/8 to 41 3/8 in mid-day trading on Thursday. Vodafone’s U.S.-listed shares dipped 11/16 to 37 5/8.

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