Cingular Said To Make Offer For AT&T Wireless

ATLANTA (AP) -- Cingular Wireless has made a formal cash offer to acquire AT&T Wireless in a deal that would create the nation's largest cell-phone carrier, a source close to the deal said Tuesday.

The offer was submitted to AT&T Wireless' board of directors over the weekend, according to the source, who spoke on condition of anonymity.

The source did not say how much Cingular was offering but said it was entirely in cash.

A message was left for AT&T Wireless, based in Redmond, Wash., but it was not immediately returned.

USA Today reported Tuesday, citing unidentified executives at two companies involved in the deal, that Cingular's offer includes a premium over AT&T Wireless' closing share price of $9.99 on Friday. Cingular, jointly owned by SBC Communications and BellSouth, is currently the nation's second-largest wireless carrier behind Verizon Communications. AT&T Wireless is the third-largest.Shares of AT&T Wireless rose 50 cents to $10.49 on the heels of the USA Today report.

Last week, the stock jumped more than 20 percent amid numerous press reports pointing to a potential bidding war between Cingular and assorted rivals, including Nextel Communications and Vodafone PLC of Britain.