Verizon Wireless has agreed to purchase rival Alltel Corp. for $28.1 billion, in a deal that allows Verizon to leapfrog AT&T and become the top wireless carrier in the U.S. According to the New York Times, the combined company will have more than 80 million subscribers. The deal will give Verizon access to 57 markets nationwide that it did not previously serve, the company said. The deal entails Verizon paying $5.9 billion for Alltel’s equity and assume $22.2 billion in debt obligations, the Times said. “This move will create an enhanced platform of network coverage, spectrum and customer care to better serve
Alltel announced Sunday that it had agreed to a $27.5 billion buyout from TPG Capital and GS Capital Partners. According to the terms of the definitive merger agreement, the two firms will pay $71.50 cash per share of all outstanding common Alltel stock, a 23 percent premium over the closing stock price prior to December 29, 2006, when media reports of a potential buyout surfaced. The merger agreement has been approved by Alltel’s Board of Directors, who have recommended approval to the company’s shareholders. Contingent upon this and regulatory approval, the transaction is expected to close in Q4 2007 or Q1 2008.