According to CNBC, Verizon is in “deep talks” to acquire Alltel, the nations 5th largest wireless carrier for an estimated $27 billion dollars.
TPG and Goldman Sachs took Alltel private last November in a $27.5 billion deal it is not expected that Verizon will pay any more than this even though Alltel has increased its earnings before interest, taxes, depreciation and amortization (Ebitda) by 10 percent since the leveraged buyout was announced last may.
If Verizon pulls an Alltel acquisition off it, once again, will be the nations largest wireless provider. Verizon currently sits in the number two spot behind AT&T by the slimmest of margins and an Alltel deal will definitely put them over the top.
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pd 06.05.08 at 8:11 am
Wizard!
JHP2 06.05.08 at 9:13 am
This would be a good acquisition for VZW. It would fill in the network in rural areas and add analog coverage. Also, it would give Alltel subscibers better data coverage. This is what Sprint should have done instead of buying Nextel
Full disclosure: I am an Alltel investor.
Robb Dunewood 06.05.08 at 9:57 am
I think that I may have had a share or two before they went private.
johnnyheff 06.05.08 at 2:46 pm
…buying another carrier is more than likely the most cost efficient way of expanding their network now.
KeNNethX 06.05.08 at 2:50 pm
It’s over there is an official announcement on the VZW web site…
http://news.vzw.com/news/2008/06/pr2008-06-05.html
argonnj 06.05.08 at 8:07 pm
Less choice and high prices. Sounds like a great deal to me.
Thought 06.05.08 at 10:11 pm
This is a smart move by Verizon. It seems they got a good price, and it gives them the bragging rights over ATT again in terms of subscribers.