France Telecom Transfers Its Remaining Interest In Crown Castle
JULY 7, 2000 - HOUSTON, TEXAS and PARIS, FRANCE - Crown Castle International Corp. (NASDAQ: TWRS) ("Crown Castle") and France Telecom announced today that under a previously announced joint approach to the orderly disposition of France Telecom's interest in Crown Castle, France Telecom has completed the liquidation of its remaining investment in Crown Castle by transferring approximately 17.7 million shares of common stock (having converted and exercised all of its other securities and warrants in Crown Castle and Crown Castles UK subsidiary (CCUK)) to Salomon Brothers International Limited (SBIL). This transaction relates to France Telecom's previously announced liquidation of its investment in Crown Castle, as required by the Office of Fair Trading in the United Kingdom in connection with France Telecom's pending equity investment in NTL Incorporated. As part of the transaction, France Telecom has executed documents reaffirming the termination of its governance rights in Crown Castle and its subsidiaries under a governance agreement and shareholder agreements with Crown Castle, CCUK and others.
As a result of the transaction, Crown Castle now owns 100% of the outstanding equity interests of CCUK.
SBIL is required, subject to certain limited exceptions, to hold the shares for a one-year lock-up period commencing June 8, 2000 (the closing date of France Telecoms recent underwritten public sale of Crown Castle common stock), after which time it will have the right to sell the remaining shares, including in a registered offering. Following June 8, 2002 Crown Castle will have the right to require SBIL to sell the remaining shares. SBIL will be required to vote the shares on any matter submitted to Crown Castle's shareholders in the same proportion as the votes cast with respect to all other outstanding shares of Crown Castle common stock. Simultaneously with its purchase of the Crown Castle shares, SBIL entered into a total return swap with France Telecom in respect of the position.
This press release contains forward-looking statements and information that are based on management's belief as well as assumptions made by and information currently available to management. Although Crown Castle believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential factors, which could affect the company's financial results, is included in the Risk Factors sections of the company's filings with the Securities and Exchange Commission. The company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
FOR: CROWN CASTLE INTERNATIONAL
W. Benjamin Moreland, CFO
Crown Castle International
713-570-3000
Ken Dennard, Managing Partner
Easterly Investor Relations
kdennard@easterly.com
713-529-6600
FOR: FRANCE TELECOM
Nilou Ducastel, Press Office
nilou.ducastel@francetelecom.fr
+33 1 44 44 93 93
Jean-Claude Grynberg, Investor Relations
Jclaude.grynberg@francetelecom.fr
+33 1 44 44 05 49