Report: Verizon Wireless in talks to buy Alltel

[SBG]

Ahead of the Bell: Verizon-Alltel

Associated Press 06.05.08, 8:56 AM ET

NEW YORK -

Analysts approved of a proposed combination between Verizon Wireless and Alltel Communications LLC Thursday, saying the two companies could save money in the deal.

Verizon Wireless, a joint venture between Verizon Communications Inc. and Vodafone PLC, is in talks to buy Alltel Communications LLC for $27 billion, Vodafone confirmed earlier Thursday. Alltel was sold to private equity firms TPG Capital and GS Capital Partners, a subsidiary of Goldman Sachs, for $24.7 billion in November. Several analysts were surprised that the company might be sold again, and for a similar price.

Goldman Sachs analyst Jason Armstrong said the move comes at a good time, as business trends for Alltel and for the wireless industry have improved. Subscribers are rising and data revenue is growing, he wrote. He said a combination could be "a largely beneficial move" because Alltel and Verizon share technology and are looking to grow.

Armstrong also thinks there will be few other bidders: technological differences would reduce AT&T Inc.'s interest, he said, and Sprint Nextel Corp.'s business problems will probably prevent it from making an offer.

Goldman Sachs, which is acting as a financial adviser in the transaction, subsequently removed its ratings and price target for Verizon Communications pending the negotiations.

Baird analyst William Power said the deal, if completed, would give Verizon the largest subscriber base in the industry.

Citi Investment Research analyst Michael Rollins said the deal might lead to a slight decline in shares of broadcast and communications tower operators.


http://www.forbes.com/feeds/ap/2008/...partner=alerts

[SBG]

Verizon Wireless agrees to buy Alltel for $5.9B

Associated Press 06.05.08, 10:09 AM ET

NEW YORK -

Verizon Wireless has agreed to buy Alltel Corp. for $5.9 billion, which would make it by far the largest cellular carrier in the U.S.

Verizon Wireless said Thursday it would assume $22.2 billion in debt in the deal, bringing the total value to $28.1 billion.

Alltel has 13.2 million subscribers in 34 states, mainly in rural areas away from the coasts. Added to Verizon Wireless 67.2 million subscribers, the size of the combined company would surpass AT&T Inc., with 71.4 million subscribers.

The parties expect the deal to close by the end of the year, pending regulatory approvals. The deal is likely to face scrutiny by the Department of Justice and the Federal Trade Commission, but analysts expect it to pass.


http://www.forbes.com/feeds/ap/2008/...partner=alerts

[imported_elp6n]

Wonder what this will do to the billing for Alltel customers, seeing as Alltel has cheaper plans (albeit a bit different) than Verizon.

[burton2019]

Prices will go up. Still good service.

[imported_elp6n]

When I changed phone plans earlier this year I went with Alltel strictly because of the $20 per month price difference for the simple plan I wanted (although I did prefer the verizon service/customer service).
I would be mightily displeased to see my rates increase anyhow.

[steer]

After it all goes through, they will increase for Alltel customers. They'll have to.
However, you'll enjoy being able to have access to your cell all of the world (if you travel) and the USA.
My opinion Alltel is not comparable to Verizon in terms of service, customer care, etc.

[CoeburnCane]

They also have more phones to choose from too.