Finance / United States
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Verizon In Talks To Acquire Alltel
June 2008 | M&A News AlertSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Vodafone has confirmed that US mobile operator Verizon Wireless, in which it holds a 45% stake, is at an advanced stage in talks to acquire rural operator Alltel. Reuters reports that the purchase would be for US$27bn, including US$23bn of Alltel's debts, valuing the entity at eight times its earnings. Alltel was privatised in November 2007, when it was purchased by private equity firms TPG Capital and GS Capital Partners. While acquiring smaller operators is not new in the US mobile market, the purchase of Alltel by Verizon would considerably boost the company's coverage and would mean that it became the largest operator in the market, adding Alltel's 13mn subscribers to its own 67mn customer base.