Verizon to Acquire Alltel In $28 Billion Deal

[Seeking Serenity]

Source: Arkansas Business

UPDATED: Verizon Wireless announced Thursday that it will buy Alltel in a deal worth $28 billion.

In a news release, Verizon it will acquire the equity of Alltel for about $5.9 billion. "Based on Alltel's projected net debt at closing of $22.2 billion, the aggregate value of the transaction is $28.1 billion," the news release said.

The companies are wanting the merger to clear by the end of the year.

Verizon said it expects to realize synergies with a net present value, after integration costs, of more than $9 billion, driven by reduced capital and operating expense savings. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing, the company said.

Alltel has more than 13 million customers in 34 states, including 57 rural markets that Verizon Wireless says it does not serve.



Read more: http://arkansasbusiness.com/article.aspx?lID=64&sID=65&...

[rhett o rick]

1. Free competition at it's finest. nm

[On the Road]

2. It's a Consolidating Industry

The company with the largest market share generally has an advantage. AT&T became #1 due to the unionn of SBC/AT&T. There are not a lot of other options. Alltel is big enough (16% market share) for Verizon to regain #1 status. Plus their footprint apparently complements Verizon. Alltel's growth is coming at a cost -- they filed a loss most recent quarter. So unlike a lot of mergers, the deal appears to make sense.

[Bravo Zulu]

3. Alltel sucks

so, this probably can't make it any worse, maybe, just maybe, it will be an improvement?

[Dont_Bogart_the_Pretzel]

4. Got that right

here at home I use to get 2 bars with Alltel and a friend visiting from Dallas with Verizon had 5 bars, I'll try Verizon when they get into town.

[OhioChick]

5. Alltel Does Suck.

Too many mergers going on, as of late.