AirTouch Soars On Merger Report

Shares of AirTouch Communications surged 5 percent Thursday afternoon on talk that the wireless phone operator will be acquired by Bell Atlantic.

AirTouch (ATI) shares jumped 3 5/8 to 73, setting a 52-week high, in late Thursday trading. Since Dec. 14, the stock has risen from 57. Bell Atlantic shares dropped 1 3/4 to 55 3/4.

Bell Atlantic (BEL) is said to be in discussions to acquire AirTouch for about $45 billion, according to a report on CNBC news shortly after 3 p.m. ET. The deal could be announced as early as next week, CNBC reported.

Officials from both companies could not immediately be reached for comment.

AirTouch, based in San Francisco, is the second largest provider of cellular phone service in the United States, after AT&T (T). It tallied $3.59 billion in sales in 1997 and has already surpassed that figure in the first three quarters of 1998 amid strong customer growth.

Bell Atlantic and ATI already operate a joint venture, PrimeCo, that supplies all-digital personal communications services. PCS service allows for smaller, lighter phones and provides a clearer signal, making them increasingly popular.

Bell Atlantic, which registered $30.2 billion in revenue in 1997, is awaiting regulatory approval of its $65 billion plan to acquire GTE Corp. (GTE). The deal would double the company's size, but still faces legal and other hurdles.

GTE shares fell 1 9/16 to 66 13/16.

Written By Jeffry Bartash, CBS MarketWatch