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Cingular Buys AT&T Wireless for $41 Billion - 2004-02-17

U.S. mobile phone giant Cingular has agreed to acquire rival AT&T Wireless to create America's largest cellular subscription base.

Cingular said the $41 billion deal will create a combined company with a potential 46 million subscribers.

Tuesday's announcement came just hours after British telecommunications giant Vodafone withdrew its bid to purchase AT&T Wireless, saying it was not in the company's best interest.

The Wall Street Journal reported today that Cingular won an auction for AT&TWireless, valuing the company at about $41 billion, compared to $38 billion by Vodafone.

Cingular is the second largest mobile phone company in the United States, while AT&T Wireless is third.

Some information for this report provided by AP and AFP.