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Verizon Wireless Completes Purchase Of Alltel

Discussion in 'Wireless News' started by Joe912, Jan 9, 2009.

  1. Joe912

    Joe912 New Member

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    01/09/2009

    BASKING RIDGE, NJ — Verizon Wireless, a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE LSE: VOD), announced today it has completed its purchase of Alltel Corporation from Atlantis Holdings LLC. Consistent with the terms of the transaction announced on June 5, 2008, Verizon Wireless paid approximately $5.9 billion for the equity of Alltel. Immediately prior to the closing, the Alltel debt associated with the transaction, net of cash, was approximately $22.2 billion.

    The acquisition expands Verizon Wireless’ network coverage to approximately 290 million people, nearly the entire United States population, and increases the company’s customers by 12.9 million, after conforming adjustments and before required divestitures, making it the largest wireless carrier in the country with more than 83.7 million total customers, based on third quarter 2008 reported results from both companies. Approximately 2.1 million of those total customers are in markets that will be divested by Verizon Wireless in the coming months, as required by the Department of Justice (DOJ) and the Federal Communications Commission (FCC) as a condition of the merger approval.

    Market Integration
    In markets that will be retained and combined with Verizon Wireless’ operations, the company will continue to use the Alltel brand for the next several months, as it works to integrate networks, convert billing systems and upgrade high-speed wireless broadband service. Verizon Wireless will maintain Alltel’s existing GSM networks in retained Alltel markets to continue serving the roaming needs of GSM carriers’ customers.

    Alltel customers in markets to be retained will receive a letter during the next few weeks informing them about the purchase and the wide array of new and advanced services that will be available to them when they transition to Verizon Wireless, including the latest wireless data services delivered on the nation’s largest 3G high-speed wireless broadband network. In addition, when Alltel systems are upgraded in the near future, Alltel customers will have access to the largest mobile-to-mobile calling community in the country, allowing them to use their mobile-to-mobile minutes for calls with Verizon Wireless customers without using their plan minutes.

    Alltel customers do not need to take any action at this time. Customers’ current service plans, prices and features, including My Circle, will remain the same throughout the transition. Verizon Wireless will notify customers, by mail, about any changes that may impact their service in the future. Since Verizon Wireless and Alltel use the same technology platform, the vast majority of customers will be able to use their current handset after the transition to Verizon Wireless. Additional information for customers is available at Store Locator - Alltel Wireless.

    Verizon Wireless will re-brand Alltel operations in the retained markets in phases, beginning in the second quarter and continuing through the third quarter of 2009, as billing conversions are completed throughout the country. During the transition period, Alltel-branded stores will remain open to serve customers.

    Alltel employees below executive level will continue in their present jobs as Verizon Wireless assesses staffing needs required to best serve customers and achieve synergies.

    Divestiture Markets
    As a condition of the regulatory approvals by the DOJ and the FCC that were required to complete the Alltel purchase, Verizon Wireless will divest overlapping properties in 105 markets across 24 states. Alltel operations will be divested in most of these markets. Verizon Wireless will divest its own pre-merger operations in four markets, as well as the Rural Cellular Corporation (RCC) operations in southern Minnesota and western Kansas, operating under the Unicel brand, which Verizon Wireless acquired last August.

    Verizon Wireless has placed licenses and assets for the markets to be divested in a management trust. The trust will continue to operate the markets under their current brands until they are sold to one or more buyers. As a result, these markets will not be integrated into Verizon Wireless operations.

    Financial Information
    Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion, driven by aggregate capital and operating expense savings.

    Verizon Wireless used a combination of cash generated from operations, Alltel cash, proceeds from capital markets transactions, and borrowings from lenders under credit facilities, including the borrowing, immediately prior to the acquisition, of $12.35 billion under a new 364-day credit facility, to purchase the equity of Alltel and to acquire and repay Alltel’s debt. Following the completion of a series of financing transactions later today, Alltel and its subsidiaries will have reduced the debt that is owed to third parties to approximately $2.7 billion, which is expected to decline further to approximately $2.5 billion within the next 30 days.

    Verizon Wireless announced its agreement, subject to regulatory approval, to acquire Alltel in June 2008. The DOJ approved the transaction in October and the FCC approved it in early November.


    Verizon Wireless Completes Purchase Of Alltel; Creates Nation’s Largest Wireless Carrier
     
  2. Joe912

    Joe912 New Member

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    Alltel Properties that will be sold

    State/CMA: Counties

    Alltel Properties that will be sold
    Alabama
    Dothan AL MSA (CMA 246): Dale, Houston AL RSA 7 (CMA 313): Butler, Coffee, Covington, Crenshaw, Geneva, Pike Arizona
    AZ RSA 5 (CMA 322): Gila, Pinal

    California
    CA RSA 6 (CMA 341): Inyo, Mono

    Colorado
    CO RSA 4 (CMA 351): Chaffee, Custer, Fremont, Lake, Park CO RSA 5 (CMA 352): Cheyenne, Elbert, Kit Carson, Lincoln CO RSA 6 (CMA 353): Dolores, Hinsdale, La Plata, Montezuma, Ouray, San Juan, San Miguel CO RSA 7 (CMA 354): Alamosa, Archuleta, Conejos, Mineral, Rio Grande, Saguache CO RSA 8 (CMA 355): Bent, Crowley, Kiowa, Otero, Prowers
    CO RSA 9 (CMA 356): Baca, Costilla, Huerfano, Las Animas

    Georgia
    Albany GA MSA (CMA 261): Dougherty, Lee GA RSA 6 (CMA 376): Crawford, Harris, Meriwether, Pike, Talbot, Taylor, Upson GA RSA 7 (CMA 377): Johnson, Laurens, Washington, Wilkinson
    GA RSA 8 (CMA 378): Bulloch, Burke, Candler, Emanuel, Glascock, Jefferson, Jenkins, Screven, Treutlen, Warren GA RSA 9 (CMA 379): Clay, Crisp, Dooly, Macon, Marion, Quitman, Randolph, Schley, Stewart, Sumter, Terrell, Webster GA RSA 10 (CMA 380): Ben Hill, Bleckley, Coffee, Dodge, Irwin, Jeff Davis, Montgomery, Pulaski, Telfair, Turner, Wheeler, Wilcox GA RSA 12 (CMA 382): Camden, Glynn, Liberty, Long, McIntosh, Wayne GA RSA 13 (CMA 383): Baker, Calhoun, Decatur, Early, Grady, Miller, Mitchell, Seminole, Thomas

    Idaho
    ID RSA 2 (CMA 389): Adams, Gem, Idaho, Payette, Valley, Washington ID RSA 3 (CMA 390): Boise, Custer, Lemhi

    Illinois
    IL RSA 8 (CMA 401): Alexander, Franklin, Jackson, Jefferson, Johnson, Massac, Perry, Pulaski, Randolph, Union, Washington, Williamson IL RSA 9 (CMA 402): Clay, Edwards, Gallatin, Hamilton, Hardin, Lawrence, Pope, Richland, Saline, Wabash, Wayne, White

    Iowa
    Sioux City IA-NE MSA (CMA 253): Woodbury, Dakota IA RSA 8 (CMA 419): Crawford, Harrison, Monona, Shelby IA RSA 16 (CMA 427): Cherokee, Lyon, O'Brien, Osceola, Plymouth, Sioux

    Michigan
    Muskegon MI MSA (CMA 181): Muskegon, Oceana

    Minnesota
    MN RSA 1 (CMA 482): Kittson, Marshall, Pennington, Red Lake, Roseau MN RSA 2 (CMA 483): Beltrami, Clearwater, Lake of the Woods, Mahnomen, Norman

    Montana
    Billings MT MSA (CMA 268): Yellowstone Great Falls MT MSA (CMA 297): Cascade
    MT RSA 1 (CMA 523): Flathead, Glacier, Lake, Lincoln, Pondera, Sanders, Teton
    MT RSA 2 (CMA 524): Blaine, Chouteau, Hill, Liberty, Toole MT RSA 4 (CMA 526): Daniels, Dawson, McCone, Richland, Roosevelt, Sheridan, Wibaux MT RSA 5 (CMA 527): Granite, Lewis and Clark, Mineral, Missoula, Powell, Rivalli MT RSA 6 (CMA 528): Broadwater, Deer Lodge, Jefferson, Judith Basin, Meagher, Silver Bow, Wheatland MT RSA 7 (CMA 529): Fergus, Golden Valley, Musselshell, Petroleum, Stillwater, Sweet Grass MT RSA 8 (CMA 530): Beaverhead, Gallatin, Madison, Park MT RSA 9 (CMA 531): Big Horn, Carbon, Rosebud, Treasure
    MT RSA 10 (CMA 532): Carter, Custer, Fallon, Powder River, Prairie

    Nevada

    NV RSA 2 (CMA 544): Elko, Eureka, Lander NV RSA 5 (CMA 547): Lincoln, White Pine

    New Mexico
    Las Cruces NM MSA (CMA 285) Dona Ana NM RSA 1 (CMA 553): Cibola, McKinley, Rio Arriba, San Juan, Taos NM RSA 5 (CMA 557): Grant, Hidalgo, Luna NM RSA 6 (CMA 558): Chaves, Eddy, Lee, Lincoln, Otero

    North Carolina
    Hickory NC MSA (CMA 166): Alexander, Burke, CatawbaNC RSA 2 (CMA 566): Avery, Caldwell, Mitchell, Watauga, Yancey NC RSA 5 (CMA 569): Anson, Montgomery, Richmond, Scotland

    North Dakota

    Bismarck ND (CMA 298): Burleigh, Morton Fargo-Moorehead ND-MN MSA (CMA 221): Clay, Cass Grand Forks ND-MN MSA (CMA 276): Polk, Grand Forks ND RSA 1 (CMA 580): Burke, Divide, McLean, Mountrail, Renville, Ward, Williams ND RSA 2 (CMA 581): Benson, Bottineau, Cavalier, McHenry, Pierce, Ramsey, Rolette, Towner ND RSA 3 (CMA 582): Barnes, Dickey, Griggs, LaMoure, Nelson, Pembina, Ransom, Richland, Sargent, Steele, Traill, Walsh
    ND RSA 4 (CMA 583): Adams, Billings, Bowman, Dunn, Golden Valley, Grant, Hettinger, McKenzie, Mercer, Oliver, Sioux, Slope, Stark ND RSA 5 (CMA 584): Eddy, Emmons, Foster, Kidder, Logan, McIntosh, Sheridan, Stutsman, Wells

    Ohio
    Lima OH MSA (CMA 158): Allen, Auglaize, Putnam, Van Wert Mansfield OH MSA (CMA 231): Richland OH RSA 2 (CMA 586): Erie, Huron, Sandusky, Seneca
    OH RSA 3 (CMA 587): Ashtabula OH RSA 5 (CMA 589): Crawford, Hancock, Hardin, Marion, Wyandot OH RSA 6 (CMA 590): Ashland, Coshocton, Holmes, Knox, Licking, Morrow, Wayne

    South Carolina
    Anderson SC MSA (CMA 227): Anderson SC RSA 1 (CMA 625): Oconee SC RSA 2 (CMA 626): Abbeville, Edgefield, Greenwood, Laurens, McCormick, Newberry, Saluda SC RSA 3 (CMA 627): Cherokee, Chester, Fairfield, Union SC RSA 7 (CMA 631): Allendale, Bamberg, Barnwell, Calhoun, Orangeburg

    South Dakota
    Rapid City SD MSA (CMA 289): Meade, Pennington Sioux Falls SD MSA (CMA 267): Minnehaha
    SD RSA 1 (CMA 634): Butte, Harding, Lawrence, Perkins SD RSA 2 (CMA 635): Campbell, Corson, Dewey, Potter, Walworth, Ziebach SD RSA 3 (CMA 636): Brown, Edmunds, Faulk, McPherson, Spink SD RSA 4 (CMA 637): Clark, Codington, Day, Deuel, Grant, Hamlin, Marshall, Roberts SD RSA 5 (CMA 638): Custer, Fall River, Shannon SD RSA 6 (CMA 639): Bennet, Gregory, Haakon, Jackson, Jones, Lyman, Mellette, Stanley, Todd, Tripp SD RSA 7 (CMA 640): Aurora, Brule, Buffalo, Charles Mix, Davison, Douglas, Hand, Hughes, Hyde, Jerauld, Sully
    SD RSA 8 (CMA 641): Beadle, Brookings, Kingsbury, Lake, Miner, Moody, Sanborn
    SD RSA 9 (CMA 642): Bon Homme, Clay, Hanson, Hutchinson, Lincoln, McCook, Turner, Union, Yankton

    Tennessee
    TN RSA 8 (CMA 650): Johnson

    Utah
    UT RSA 3 (CMA 675): Juab, Millard, Sanpete, Sevier UT RSA 4 (CMA 676): Beaver, Iron, Washington UT RSA 5 (CMA 677): Carbon, Daggett, Duchesne, Emery, Grand, Uintah
    UT RSA 6 (CMA 678): Garfield, Kane, Piute, San Juan, Wayne

    Virginia
    Danville VA MSA (CMA 262): Pittsylvania, Danville City VA RSA 1 (CMA 681): Buchanan, Dickenson, Lee, Russell, Wise, Norton City A RSA 8 (CMA 688): Amelia, Brunswick, Lunenberg, Mecklenburg, Nottoway

    Wyoming
    Casper WY MSA (CMA 299): Natrona WY RSA 1 (CMA 718): Big Horn, Hot Springs, Park, Washakie WY RSA 2 (CMA 719): Campbell, Crook, Johnson, Sheridan, Weston WY RSA 4 (CMA 721): Albany, Goshen, Laramie, Niobrara, Platte WY RSA 5 (CMA 722): Converse
    Verizon Wireless Properties that will be sold

    Michigan
    MI RSA 5 (CMA 476): Benzie, Lake, Leelanau, Manistee, Mason, Missaukee, Osceola, Wexford MI RSA 7 (CMA 478): Gratiot, Isabella, Mecosta, Montcalm, Newaygo

    Minnesota
    MN RSA 7 (CMA 488): (see also Unicel): Chippewa, Kandiyohi, McLeod, Meeker, Nicollet, Renville, Sibley

    Nebraska
    NE RSA 5 (CMA 537): Boone, Butler, Colfax, Dodge, Merrick, Nance, Platte, Polk, Saunders, Washington Unicel (RCC) Properties that will be sold

    Kansas
    KS RSA 1 (CMA 428): Cheyenne, Decatur, Rawlins, Sheridan, Sherman, Thomas KS RSA 2 (CMA 429): Graham, Norton, Osborne, Phillips, Rooks, Smith KS RSA 6 (CMA 433): Gove, Greeley, Lane, Logan, Scott, Wallace, Wichita KS RSA 7 (CMA 434): Barton, Ellis, Ness, Pawnee, Rush, Russell, Trego KS RSA 11 (CMA 438): Finney, Grant, Hamilton, Haskell, Kearny, Morton, Seward, Stanton, Stevens KS RSA 12 (CMA 439): Clark, Ford, Gray, Hodgeman, Meade
    KS RSA 13 (CMA 440): Barber, Comanche, Edwards, Kiowa, Pratt, Stafford

    Minnesota
    MN RSA 7 (CMA 488) (see also VzW): Chippewa, Kandiyohi, McLeod, Meeker, Nicollet, Renville, Sibley MN RSA 8 (CMA 489): Lac qui Parle, Lincoln, Lyon, Redwood, Yellow Medicine
    MN RSA 9 (CMA 490): Brown, Cottonwood, Jackson, Martin, Murray, Nobles, Pipestone, Rock, Watonwan MN RSA 10 (CMA 491): Blue Earth, Faribault, Freeborn, Le Sueur, Rice, Steele, Waseca
     
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  3. M in LA

    M in LA Mobile 25 Years Plus
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    Thanks for the thorough info Joe. :thumb:
     
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  4. hf1khal

    hf1khal Who am I to judge
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    Thanks for the info Joe. Now I remember that at&t bought some markets from VZW (as well as at&t selling some to VZW) anh one has any idea which of those markets went to at&t and how many of those include the customers?
     
  5. QLR

    QLR RIP Note!
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    Verizon had to sell off the Unicel assets in Vermont, New York, and Washington state. In exchange, they got former Dobson network and properties in Kentucky. This had to be completed in order for Verizon to buy Unicel and AT&T to buy Dobson/Cellular one
     
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  6. hf1khal

    hf1khal Who am I to judge
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    Thanks. But any one has any idea as to who the rest of those are going to go to?
     
  7. Der84

    Der84 EH!
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    Sorry if this is a stupid question.

    So, Alltel has been bought out, so it no longers exists as Alltel?
     
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  8. COtech

    COtech Bronze Senior Member
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    The 105 or so markets that the FCC and DOJ excised from VZW's purchase should retain the Alltel name, for now, until someone buys and renames them. Services (and billing) will continue unaffected.

    COtech
     
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  9. Fire14

    Fire14 Easy,Cheap & Sleazy
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    It's not a stupid question, no questions are stupid. Yes Verizon bought Alltel & Alltel no longer exsists and is now going to be Verizon (with the exception of the area's that had to be diversified, that will be whoever buys those area's like AT&T, T-Mobile or some regional carriers)
     
  10. Der84

    Der84 EH!
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    Aah ok, that explains it. Thanks COtech and Fire 14!
     
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  11. SmArTeStChIlD421

    SmArTeStChIlD421 Silver Senior Member
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    and while the intgration of the retained customers into Verizon's system will happen relatively quickly by the American standard........the sale of divested markets that Verizon can't keep may take longer......probably the rest of the year and some of next if it's bad enough
     
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  12. txrxyrd

    txrxyrd New Member

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    Regarding the following excerpt from posting by Joe912: "Verizon Wireless has placed licenses and assets for the markets to be divested in a management trust. The trust will continue to operate the markets under their current brands until they are sold to one or more buyers. As a result, these markets will not be integrated into Verizon Wireless operations."

    Does anyone know who the Trustee (of the Mamagement Trust) may be?? any Name and contact info would be greatly appreciated.
     
    #12 txrxyrd, Jan 20, 2009
    Last edited: Jan 20, 2009
  13. COtech

    COtech Bronze Senior Member
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    I did a few searches, and read a bunch of text--most of it saying "a trust". This article has the trustee's name and corporation, Steve Cannon of Constantine Cannon LLP. He and his team will work from former Alltel HQ in Little Rock.

    COtech
     
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  14. txrxyrd

    txrxyrd New Member

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    Thanks COtech. This is exactly the information I was looking for. I have already followed the link and will locate the proper staff member within this company. Take Care.
     
  15. ctk74

    ctk74 Junior Member
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    Does Verizon get to retain the profits generated by the trust while it is waiting to be sold?
     
  16. COtech

    COtech Bronze Senior Member
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    I certainly expect not. After all, they've divested the customers, facilities, employees, etc. The trust will need profits to reinvest in EVDO, denser coverage, whatever... Of course, VZW does own the shares until a sale is completed and the trust closed. Whatever is declared, of profits, as dividends--that's what I'd expect trust owners (not controllers) Verizon and Vodafone could receive.

    I am not a finance major.

    COtech
     
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