Verizon Wireless is in talks to buy Alltel Communications LLC, the country’s fifth-largest wireless carrier by subscribers, for $27 billion, according to news reports. If consummated, an acquisition would be the biggest telecom deal since AT&T Inc. bought BellSouth Corp. at the end of 2006. Adding Alltel’s 13.2 million subscribers to Verizon Wireless’ 67.2 million would create the largest wireless carrier in the country, far ahead of AT&T Inc. with 71.4 million customers. Talks are at a sensitive stage, according to CNBC and The Wall Street Journal. Both reports cited unnamed sources close to the discussions. Representatives of Verizon Communications Inc. and Alltel had no comment Wednesday.(Associated Press)(6-5-2088) UPDATE: Verizon Wireless said Thursday it would buy rural mobile phone service provider Alltel Corp for $28.1 billion, including debt, which would vault it to first place in the U.S. market ahead of AT&T Inc. Under the deal, Verizon Wireless would acquire the equity of Alltel for $5.9 billion and take on an estimated $22.2 billion in debt, mostly incurred when Alltel was taken private in November in a leveraged buyout by TPG Capital and Goldman Sachs Group Inc’s GS Capital Partners. Verizon Wireless said the deal would create savings of $1 billion in the second year after closing, which is targeted for the end of 2008, pending regulatory approval. It forecast total savings of more than $9 billion by 2011, driven by reduced capital and operating expenses. Verizon Wireless and Alltel, which has more than 13 million customers, together would have more than 80 million customers. AT&T ended the first quarter with about 71 million customers.(Forbes.com), no word on how or if this would effect the sponsorship [which is good thru 2008] of the #12 Penske Racing Dodge of Ryan Newman, whose primary sponsor is Alltel.(6-6-2008)
