TDS Consolidated
TDS has a disciplined financial approach that gives us the flexibility and access to liquidity to pursue productive business opportunities.  This approach includes the following objectives:

  • Grow revenues at rates greater than those of the markets in which we participate. Based on our business mix, our target is seven to ten percent compound annual revenue growth over five years. 
  • Generate in each business a return on capital (ROC) greater than its cost of capital. 
  • Target a strong, investment-grade credit rating.

TDS’ five-year compound annual growth rate in operating revenues through the end of 2006 was 11 percent.  TDS grew its operating revenues 10 percent in 2006 to $4.4 billion.

In 2006, TDS also redeemed $200 million of senior notes and $35 million of medium-term notes.

In March 2007, TDS announced that it was ceasing activity relating to its possible offer to acquire all of the Common Shares of U.S. Cellular that it did not already own.  Early in 2005, TDS had disclosed that it might make an offer to issue its Special Common Shares in exchange for such U.S. Cellular Common Shares.

In ceasing activity related to the acquisition, TDS made it clear that it would not commence or complete a possible transaction for U.S. Cellular shares on uneconomic terms.  TDS believes that an acceptable exchange ratio would need to reflect appropriately the relative values of TDS and U.S. Cellular, recognizing that a substantial portion of the value of TDS is comprised of its ownership of U.S. Cellular.  TDS believes that the relative prices of TDS Special Common Shares and U.S. Cellular Common Shares do not reflect this fact.  As a legal matter, termination of consideration of a possible offer does not preclude TDS from acquiring the remaining Common Shares of U.S. Cellular in the future, should conditions change.

In May 2007, Gregory P. Josefowicz was nominated for election to the TDS board of directors.  Mr. Josefowicz brings with him executive management, retail merchandising and consumer marketing insight, and more than 20 years of experience leading large retail organizations.  Mr. Josefowicz is being nominated to replace Martin Solomon, who will retire from our board this year.  We thank Mr. Solomon for his many years of excellent service.