6/5/2008 4:36:00 PM
Verizon Wireless confirmed as buying Alltel
Vodafone has confirmed its US joint venture Verizon Wireless has agreed to acquire Alltel Corp for a total of $28.1billion (£14.3bn) in cash and assumed debt.
Alltel is the 5th largest mobile operator in the US, with over 13 million customers across 34 states in the US.
Alltel was brought by a group of private equity groups just a few months ago for a gross valuation of $27.5 billion, inc debt.
Arun Sarin, Vodafone CEO, said: ‘We expect the acquisition of Alltel to significantly increase the value of our 45% interest in VZW through the realisation of substantial in-market synergies and to reinforce its leading position in the world's largest mobile market by revenues.
‘Whilst VZW's free cash flows will initially be deployed in reducing net debt, the VZW Board has agreed to conduct an annual dividend review process and to the payment of enhanced tax distributions.’