AT&T to sell data centers worth $2 billion: sources

Mon Feb 2, 2015 6:10pm EST
 
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By Liana B. Baker and Malathi Nayak

NEW YORK/SAN FRANCISCO (Reuters) - AT&T Inc is selling some data centers worth about $2 billion as it continues its streak of asset sales, people familiar with the matter said on Monday.

AT&T, the No. 2 U.S wireless provider, has been exploring options to pay down its debt and raise funds for investments in recent months. The company declined to comment.

The three sources requested anonymity because the matter is not public.

AT&T and its rival Verizon have been selling non-core assets in recent months. Verizon is close to announcing divestitures of wireless towers and wireline markets worth $10 billion, the Wall Street Journal reported on Monday.

AT&T hired a financial adviser to assist in the sale.

Following spectrum investments and pending acquisitions, AT&T's debt ratio may rise in the near term, the company said last week after spending close to half of the total bids in the record-setting $44.9 billion spectrum sale that concluded last week.

AT&T emerged the top bidder in the AWS-3 spectrum auction by bagging 251 licenses worth $18.2 billion.

The company has also been investing to expand its footprint in Mexico to grow its business, as the U.S. wireless market reaches saturation. It said last month it would buy bankrupt NII Holdings Inc's wireless business in Mexico for $1.875 billion.   Continued...

 
An AT&T Logo is pictured on the side of a building in Pasadena, California, January 26, 2015.  REUTERS/Mario Anzuoni