Feeds

Alltel in multi-billion dollar buyout

TPG Capital and GSCP tag-team mobile operator

Boost IT visibility and business value

TPG Capital and Goldman Sachs Capital Partners (GSCP) have agreed a deal to purchase US mobile operator Alltel in a $27.5bn deal.

The agreement will see the investment firms acquire all outstanding Alltel stock for $71.50 per share, which represents a 23 percent premium on Alltel's closing price prior to the first time it was touted as a buyout target on 29 December.

Alltel has 12 million subscribers in 35 states in the US, mostly in the West, Midwest and South of the country.

If completed, the deal will be one of the largest private equity transactions ever made. The mobile operator expects the sale to be finalised by the fourth quarter of 2007 or by the first quarter of 2008. Completion of the deal is contingent upon customary closing conditions, including approval by Alltel's shareholders and regulatory approvals. Shareholders will be asked to vote on the proposed transaction at a special meeting that will be held on a date that has yet to be announced.

"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," said Scott Ford, chief executive of Alltel, will remain on as chief executive after the takeover is complete.

"TPG and GSCP are long-term investors who are willing to make the investments necessary to continue to grow our wireless business in all of our markets. This transaction also ensures our customers can continue to rely on Alltel to deliver high-quality service and leading edge products and services," he said.

"We are excited about this opportunity to partner with an exceptional management team to continue to support their strategies for growth," said Richard Friedman, head of the Merchant Banking Division at Goldman Sachs.

The deal comes nearly a year to the day of Eircom's directors approving its takeover by an investment house. The private equity deal saw Australian investors Babcock & Brown acquire the telecoms operator in a €2.4bn deal.

Copyright © 2007, ENN

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?