Breaking: Verizon Wireless acquires Alltel for $28.1 billion!
By Dusan Belic on Thursday, June 5th, 2008 at 9:31 AM PST In Alltel, Announcements, Verizon
Verizon (NYSE: VZ) Wireless is acquiring Alltel in a cash merger. Under the terms of the agreement, Verizon Wireless will acquire the equity of Alltel for approximately $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.
Both mobile operators use a common network technology, and Verizon Wireless 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.
Alltel President and CEO Scott Ford will continue in his current position as head of Alltel until the merger is completed (by the end of the year).
Full press release is available on PRNewswire.
Wow…Really?! I never would have saw it coming, I mean, Alltel is a great seller out here where I’m at. Never thought they would be that much in debt. Huh…Oh well, one less carrier to worry about!
The FCC will approve the deal, more than likely. Verizon Wireless is in a rush to complete the regulatory issues, such as the FCC and Department of Justice by the end of the year – if not sooner – due to the change in political power the Democrats. One famous name to throw out is the possible departure of Commissioner Deborah T. Tate, whom is currently for the merger and could shift the tides if and when she departs. Looking forward to how Verizon Wireless handles this politically!
http://www.anythingformycell.com