The deal was approved by Alltel’s shareholders and obtained the clearance from the Federal Communications Commission (FCC) in October 2007. TPG Capital and GS Capital partners paid $71.50 per share in cash to all shareholders as per the terms of the deal.
In 2006, Alltel spun off its traditional phone business to Valor Communications Group for $4.9 billion. According to yahoo, this deal made Alltel a stand-alone wireless company and a potential target for acquisition.
Alltel has 15,000 employees and annual revenue of approximately $8 billion.
Recently Alltel announced a $3 billion share purchase program. The company reported only $2.7 billion in debt when the merger was announced. Although now it will carry an estimated $23 billion in debt to finance the buyout.
According to the regulatory filings the Alltel board members would step down. However, Scott Ford, Alltel’s president and chief executive is expected to continue, as reported by the company.
Source: ComputerWire daily updates
