Alltel goes private in $24.7b deal

Staff Writer | November 20, 2007

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(Associated Press via NewsEdge) Alltel, the nation's fifth-largest wireless carrier, was taken private to complete a $24.7 billion buyout by two private equity groups.

The deal earlier won approval of shareholders and was cleared by the Federal Communications Commission. There are concerns that the debt burden that Alltel will carry to finance the buyout, $23 billion, will limit its ability to grow, however.

The Little Rock-based company said in an earlier filing that it intends to take part in a Jan. 24 auction of the wireless spectrum, which is to provide room for companies to expand their offerings. The filing notes that there is no guarantee that Alltel will be a successful bidder.

TPG Capital, formerly Texas Pacific Group, and GS Capital Partners, a subsidiary of Goldman Sachs, are paying Alltel shareholders $71.50 per share in cash, according to the terms of the deal.

Alltel announced earlier that company president and CEO Scott Ford would remain in that capacity, although some other executives were being shuffled.

In a statement, Ford said, 'This transaction delivers substantial value to our shareholders, and we want to thank them again for their support through the years.'

The $71.50 purchase price is 22.6% higher than the last closing share price of $58.31 before news of a possible buyout leaked in December.

Last year, Alltel spun off its traditional phone business to Valor Communications Group of Irving, Texas, in a $4.9 billion deal that created Windstream, based in Little Rock. That last move left Alltel as a stand-alone wireless company and made it a target for acquisition.

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