Alltel Bought Out For 27.5 Billion Dollars

Alltel announced today that they had agreed to a 27.5 Billion dollar buyout from two private investment companies. TPG Capital, formerly Texas Pacific Group, and GS Capital Partners, a subsidiary of Goldman Sachs are buying out the fifth largest cell phone company in the United States. They have also agreed to pay back another 2.7 billion in debt.

This transaction delivers substantial and certain value to our shareholders while providing the company with long-term partners who share our commitment to our customers, employees and the communities we serve,” Scott Ford, Alltel’s chief executive, said in a news release.

“This transaction also ensures our customers can continue to rely on Alltel to deliver high-quality service and leading edge products and services.”

The deal, if approved by shareholders and regulators, is expected to close during the fourth quarter of this year or the first three months of 2008, Alltel said.

Although Alltel isn’t the largest wireless provider, they have the largest wireless footprint in America. They currently have around 12 million wireless subscribers based in South, West and Midwest. The investment firm offered $71.50 in cash a share for all common stock outstanding.

There are no plans to change staffing or change headquarters, which are based in Little Rock.

AP