We are reader supported. External links may earn us a commission.

Phones

Family-owned US Cellular won’t sell, despite its largest investor’s intentions

By Jules Wang April 11, 2017, 2:24 am

It’s sometimes considered the fifth carrier in the United States’ four-carrier game and some investors see it crawling into a death spiral. But with its 5 million subscribers spread across the midwest and north of the country and spectrum more valuable than ever with recent auctions and dealings for 5G advancement, US Cellular is being pegged to have great potential.

The New York Post reports that the company’s largest outside investor, Peter Gabelli, believes that the company can sell out at $71 per share, compared to the $38 it closed at on Monday.

Gabelli, who leads Gabelli & Co., took US Cellular Chairman LeRoy Carlson Jr. on a tour of hedge funds several weeks ago. He speculated in an investment report that there’s a half-and-half flip on whether the company or a substantial proportion of its assets will liquidate “over the medium term”.

One source who talked with Carlson claims that he dismissed the idea of giving up his company. Carlson’s family has super-majority voting rights in publicly-traded Telephone & Data Systems, despite only owning about 10 percent of its shares. TDS itself owns 73 percent of US Cellular stock.

Latest Articles

Search