The Gabelli Value 25 Fund Inc. on Telephone and Data Systems Inc.
Thesis
TDS owns rural telecom operations and controls Array Digital Infrastructure, a large U.S. wireless-tower operator. The company proposed acquiring the remaining Array shares it does not own, which could simplify the structure and consolidate the tower asset. The investment case also retains exposure to valuable wireless infrastructure.
“TDS submitted a non-binding proposal to the board of its 82%-owned subsidiary, Array Digital Infrastructure Inc.”
Key risks
- Incremental competition from Starlink