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New York City-based AT&T (NYSE: T) said on Friday the split off of AT&T Wireless Group as a separate company will occur on July 9. AT&T Wireless currently trades as a tracking stock on the New York Stock Exchange under the symbol “AWE”.

In a statement, AT&T said its board voted to redeem AT&T Wireless tracking shares and convert them into AT&T Wireless common stock, and pay a special stock dividend of AT&T Wireless stock to AT&T common shareholders of record on June 22.

The special dividend is the means through which AT&T will distribute approximately 1.16 billion shares of AT&T Wireless currently held by it and complete the split off of AT&T Wireless. As previously announced, the distribution excludes approximately $3 billion of AT&T Wireless common stock AT&T plans to retain for later disposition.

AT&T Wireless shares will be distributed on the basis of about a third of a share of AT&T Wireless for each AT&T common share outstanding. The final ratio will be determined based on the actual number of AT&T shares outstanding on the record date and the exact amount of AT&T Wireless shares retained. Following the recent completion of its Wireless exchange offer, AT&T had approximately 3.45 billion common shares outstanding.

As a result of the exchange offer and planned distribution of AT&T Wireless shares, AT&T shareowners will own about 63% of the outstanding shares of AT&T Wireless common stock following the separation. Previously, more than $20 billion of AT&T Wireless tracking shares and tracking share equivalents were sold to new investors as part of a public offering in April 2000 and to NTT DoCoMo in January this year. These holdings will also be redeemed and represent about 30% of the outstanding AT&T Wireless common stock.

Based in Redmond, Washington, AT&T Wireless is the No. 3 U.S. mobile phone service provider behind Verizon Wireless and Cingular Wireless.

Hoover”s Online: AT&T
Hoover”s Online: AT&T Wireless Group