FORM 8-K/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 31, 2001
------------
TELEPHONE AND DATA SYSTEMS, INC.
--------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-14157 36-2669023
-------- ------- ----------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
30 North LaSalle Street, Chicago, Illinois 60602
------------------------------------------------ ------
(Address of principal executive offices) Zip Code)
Registrant's telephone number, including area code: (312) 630-1900
Not Applicable
--------------
(Former name or former address, if changed since last report)
Item 2. Acquisition or Disposition of Assets.
-------------------------------------
On May 31, 2001, Telephone and Data Systems, Inc.'s 35,837,271 VoiceStream
Wireless Corporation common shares were converted into 131,461,861 Deutsche
Telekom AG ordinary shares and $570.0 million of cash. Each VoiceStream share
held by TDS was converted into 3.6683 shares of Deutsche Telekom and $15.9062 of
cash. This transaction was a result of the merger of VoiceStream Wireless
Corporation with a subsidiary of Deutsche Telekom.
A copy of the TDS news release is attached as an exhibit to this Current Report
on Form 8-K/A.
As of March 31, 2001, TDS reported Gross Unrealized Holding Losses from
Marketable Equity Securities of $683.8 million in its Form 10-Q. Of this amount,
$588.9 million represented an unrealized holding loss on TDS's investment in
VoiceStream as a result of a decline in the market price of VoiceStream common
stock since TDS acquired such stock on May 4, 2000. This amount, net of taxes,
was previously reflected in Accumulated Other Comprehensive Income (Loss) by
TDS.
As of May 31, 2001, the pre-tax loss on TDS's investment in VoiceStream
increased to $644.9 million and was recognized as a component of income as a
result of the conversion of VoiceStream shares to Deutsche Telekom shares and
cash. The effect of the transaction will be to reduce TDS's net income for the
quarter ended June 30, 2001 by approximately $390 million.
This realization of loss for accounting purposes is a one-time, non-recurring
event that has no effect on cash.
Item 7. Financial Statements and Exhibits
---------------------------------
Exhibits
--------
The exhibits accompanying this report are listed in the accompanying Exhibit
Index.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereto duly authorized.
Telephone and Data Systems, Inc.
(Registrant)
Date: June 22, 2001
By: /s/ D. Michael Jack
-------------------------------
D. Michael Jack
Vice President and Controller
(Principal Accounting Officer)
EXHIBIT INDEX
Exhibit Number Description of Exhibit
-------------- ----------------------
99.1 News release announcing the conversion
of VoiceStream shares into Deutsche
Telekom shares and cash.