AT&T was the first national wireless carrier in the United States to introduce WCDMA services" (att.com). AT&T "used the approximately $6.2 billion it received from the share sale to continue executing its strategy to expand its capacity, enlarge its footprint, create an advanced mobile Internet, and invest in other strategic growth initiatives, as well as strengthening its balance sheet. AT&T said it intends to use the remaining $3.6 billion it will receive for debt reduction" (att.com). Prior to the spin-off of the new subsidiary, AT&T recorded a non-cash carrying cost on the preferred stock of just under 7%, which will result in a 3 to 4 cent negative impact to AT&T's 2001 full-year earnings. This includes interest expense savings AT&T is expected to realize by reducing its debt (att.com).
Interestingly, NTT DoCoMo's investment will be in the form of preferred stock, with each share equivalent to 500 shares of AT&T Wireless tracking stock. Otherwise, the preferred stock will have essentially the same economic interest as the AT&T Wireless tracking stock. As a result of this transaction, AT&T will have a 69.8% economic interest in AT&T Wireless' operating results whereas about 14% of the economic interest in AT&T Wireless' operating results will continue to be represented by the existing AT&T Wireless tracking stock publicly traded on the NYSE (att.com).
AT&T offered shareowners an opportunity to exchange their AT&T common shares for AT&T Wireless tracking stock early in 2001. Later that year, AT&T completed the spin-off of AT&T Wireless by exchanging AT&T Wireless common stock for the tracking stock and distributing a special dividend of AT&T Wireless common stock to AT&T shareowners.