TSR Wireless, which operates paging networks in 30 states, has submitted a proposal to buy competitor MobileMedia, which has been in Chapter 11 proceedings since January 1997.
TSR made the proposal at the request of MobileMedia's unsecured creditors, who are dissatisfied with a merger agreement reached late last year between MobileMedia and carrier Arch Paging.
Under the TSR proposal, unsecured creditors would become part-owners of the combined entity, as would TSR's current management, a pair of investment companies, and Telephone and Data Systems, a minority owner of TSR.
A TSR/MobileMedia merger would give TSR an expanded footprint and a presence in national retail accounts. TSR sells through resellers and retailer/resellers, and it operates more than 250 of its own wireless stores, which also sell wireless voice service.
The rationale for the MobileMedia-Arch merger was to combine Arch's presence in small- and mid-size markets with MobileMedia's larger markets and portfolio of national retail accounts. The combined company would be the country's second largest paging carrier by subscriber count. Likewise, a TSR/MobileMedia merger would create the second largest paging carrier.