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Alltel SOLD

Discussion in 'Alltel Forum' started by mcwilliams, May 20, 2007.

  1. mcwilliams

    mcwilliams Junior Member
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    Alltel has been sold to Texas Pacific a private equity group for $27.5 billion. Reports are still sketchy, but will post more in the morning as more information becomes available.
     
  2. strunke

    strunke .:|Always Covered|:.
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    Hmmm, they better expand and get into the 700 auction....
     
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  3. mcwilliams

    mcwilliams Junior Member
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    Among many other things. Alltel needs to make some changes in a bad way. They have sort of recovered on the customer service side, well except for their call centers. But we will see what this change brings. I will update tomorrow after talking to some people there and getting any feel that they have. Also I will post the WSJ article.
     
  4. KyleAndMelissa22

    KyleAndMelissa22 Woot Woot, Splat !!!
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    This all doesn't take place overnight... :rant: :sleep:
     
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    #4 KyleAndMelissa22, May 21, 2007
    Last edited: May 21, 2007
  5. UFO

    UFO Bronze Senior Member
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    Alltel to Be Acquired by TPG Capital and GS Capital Partners for $71.50 Per Share: Financial News - Yahoo! Finance

    LITTLE ROCK, Ark.--(BUSINESS WIRE)--Alltel Corp. (NYSE: AT - News) today announced that it has signed a definitive merger agreement to be acquired by TPG Capital and GS Capital Partners ("GSCP"), in a transaction valued at approximately $27.5 billion.dend until closing.

    Under the terms of the merger agreement, TPG Capital and GSCP will acquire all of the outstanding common stock of Alltel for $71.50 per share in cash. The purchase price per share represents a 23% premium over Alltel's closing share price prior to media reports of a potential transaction published on December 29, 2006. Alltel intends to pay its regular quarterly common share dividend until closing.

    Alltel's Board of Directors has unanimously approved the merger agreement after a comprehensive review of the company's strategic options, and has recommended the approval of the transaction by Alltel's shareholders. Completion of the transaction, which is currently expected to occur by the fourth quarter of 2007 or by the first quarter of 2008, is contingent upon customary closing conditions, including approval by Alltel's shareholders and certain regulatory approvals. Shareholders will be asked to vote on the proposed transaction at a special meeting that will be held on a date to be announced. Scott Ford, Alltel's chief executive officer, will remain in his current role.

    "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 Mr. Ford. "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."

    "Alltel is a great company with a terrific management team," said Jim Coulter, founding partner, TPG. "We look forward to working with them to continue to grow one of the nation's premier wireless providers."

    "Alltel has a long history of growth through strategic acquisitions, combined with a strong focus on customer service," said Richard Friedman, head of the Merchant Banking Division at Goldman Sachs. "We are excited about this opportunity to partner with an exceptional management team to continue to support their strategies for growth."

    Merrill Lynch & Co., Stephens Inc. and JP Morgan Securities Inc. acted as Alltel's financial advisors, and Wachtell, Lipton, Rosen & Katz acted as legal advisor. Citigroup and Goldman Sachs acted as financial advisors to TPG and GSCP; Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to TPG; Weil Gotshal & Manges LLP acted as legal advisor to GSCP, and Akin Gump Strauss Hauer & Feld LLP acted as regulatory counsel to the buyers. Acquisition financing will be provided by Goldman Sachs, Citigroup, Barclays and RBS.

    About Alltel

    Alltel is owner and operator of the nation's largest wireless network and has 12 million wireless customers.

    About TPG Capital

    TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992, with more than $30 billion of assets under management and offices in San Francisco, London, Hong Kong, New York, Minneapolis, Fort Worth, Melbourne, Menlo Park, Moscow, Mumbai, Shanghai, Singapore and Tokyo. TPG Capital has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. TPG Capital's investments span a variety of industries including communications, technology, healthcare, retail/consumer, travel, media, industrials and financial services. Please visit Texas Pacific Group : Home.

    About GS Capital Partners

    Since 1986, Goldman Sachs has raised thirteen private equity and mezzanine investment funds aggregating $56 billion of capital commitments. GS Capital Partners is the private equity vehicle through which The Goldman Sachs Group, Inc., conducts its privately negotiated corporate equity investment activities. GS Capital Partners is currently investing its GS Capital Partners VI fund. GS Capital Partners is a global private equity group with a focus on large, sophisticated business opportunities in which value can be created through leveraging the resources of Goldman Sachs.

    Forward-Looking Statements

    Alltel claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Actual future events and results may differ materially from those expressed in these forward-looking statements as a result of a number of important factors. Representative examples of these factors include (without limitation): the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with TPG and GS Capital; the inability to complete the merger due to the failure to obtain stockholder approval for the merger or the failure to satisfy other conditions to completion of the merger, including the receipt of all regulatory approvals related to the merger; risks that the proposed transaction disrupts current plans and operations; adverse changes in economic conditions in the markets served by Alltel; the extent, timing, and overall effects of competition in the communications business; material changes in the communications industry generally that could adversely affect vendor relationships with equipment and network suppliers and customer relationships with wholesale customers; changes in communications technology; the risks associated with the integration of acquired businesses; adverse changes in the terms and conditions of the wireless roaming agreements of Alltel; the potential for adverse changes in the ratings given to Alltel's debt securities by nationally accredited ratings organizations; the uncertainties related to Alltel's strategic investments; the effects of litigation; and the effects of federal and state legislation, rules, and regulations governing the communications industry. In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes.

    IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT:

    In connection with the proposed merger, Alltel will file a proxy statement with the Securities and Exchange Commission (the "SEC"). INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND THE PARTIES TO THE MERGER. Investors and security holders may obtain a free copy of the proxy statement (when available) and other relevant documents filed with the SEC from the SEC's website at U.S. Securities and Exchange Commission (Home Page). Alltel's security holders and other interested parties will also be able to obtain, without charge, a copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Director-Investor Relations, Alltel Corporation, One Allied Drive, Little Rock, AR 72202, telephone 1-877-446-3628 or from Alltel's website, Alltel.com - Official Site.

    Alltel and its directors and certain of its officers may be deemed to be participants in the solicitation of proxies from Alltel's shareholders with respect to the merger. Information about Alltel's directors and executive officers and their ownership of Alltel's common stock is set forth in the proxy statement for Alltel's 2007 Annual Meeting of Shareholders, which was filed with the SEC on April 16, 2007. Shareholders and investors may obtain additional information regarding the interests of Alltel and its directors and executive officers in the merger, which may be different than those of Alltel's shareholders generally, by reading the proxy statement and other relevant documents regarding the merger, which will be filed with the SEC.
     
  6. PCSuser

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  7. RJB

    RJB Gold Senior Member
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  8. RJB

    RJB Gold Senior Member
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    GSM4ruralareas sorry i didnt see that you put a link up credit goes to you my friend.
     
  9. KyleAndMelissa22

    KyleAndMelissa22 Woot Woot, Splat !!!
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    well as long as it doesn't affect current usage of service & their plans, i'm still happy.... :hmm:
     
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  10. UFO

    UFO Bronze Senior Member
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    In a way to me this comes as very good news, if I can explain.

    It was pretty obvious, now, to see that Alltel has been for a while trying to sell and they were not employing a 'strategic review' to pump up their stock price for a buyout of another carrier.

    Hopefully now, as a privately owned company, they can look beyond the quarterly reports and making the stockholders happy for the short-term and they can start making some long-term decisions. It's really the only way that Alltel can survive in the long-term with so many telecommunications giants teetering on the edge of monopolies.

    Hopefully this will bring in a breath of fresh air into the leadership position with things such as data revenue. Previously, Alltel's strategy at increasing data revenue was to expand EVDO rapidly. Personally, I think Alltel's main stumbling block is the lack of fairly priced data packages of tv, xm radio, mp3s, or other combinations much like Sprint and Verizon employ. Private companies also have no need to balance expenses with growth. In a long-term style of businesses, they have the capability of building many towers rapidly at a costly, money losing pace, but only to reap the rewards in the long-term of having the best network in any given area with that reputation years before Verizon or Cingular build out into the more rural areas that Alltel specializes in.

    Overall, the future could be anything. This could be a very good move for the long-term future of Alltel, or it could be a private company hoping the chop the company into each market and sell it off to make a profit. I've got my fingers crossed that the leaders of the private equity will be much more long-term oriented and see the gold mine that Alltel offers for the future with the right decisions and how it could one day become a giant if it continues to take on customers as it is with good deals and good coverage that must continue to improve while growing their native coverage area by auction or buyouts.
     
  11. RJB

    RJB Gold Senior Member
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    I just wish alltel could obtain a liceanse in the utah, salt lake county area.
     
  12. KyleAndMelissa22

    KyleAndMelissa22 Woot Woot, Splat !!!
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    I've heard that the spectrum should remain.
    So if you get a good signal now, it will remain at that level, or maybe even a little better. :rolleyes:
     
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