- UBS Profit Misses Forecasts; Bank Warns on Revenue
- Toyota Quarterly Profit Tops View, Ups Annual Outlook
- China Growth Could Halve If Europe Crisis Worsens: IMF
- Stock Rally Turns Hedge Fund Losers Into Winners
- Strategist: 3 Reasons Why Risk-On Is Back in Fashion
- ArcelorMittal Sees Pick-Up After Weak End to 2011
- Traders Watch Bernanke for Any Shift After Jobs Report
- Japan Chooses Stealth Intervention to Curb Yen Rise
- Super Bowl, Madonna Set New TV Audience Records
- GM Net Income of $10 Billion Isn't 'Crazy': Steven Rattner
- After The Super Bowl: Who’s Buying?
- S&P 500 Earnings: Industrials Lead
- Will Super Bowl Ad Buzz Generate Sales Buzz?
- 5 Stocks That Pay You Twice as Much as Treasurys
- Running Robo-Settlement Numbers
- ‘Goodnight iPad’ — A Bedtime Story for Adults
- 4 Reasons Why Google Should Buy Twitter
- Zynga Set to Ride on Facebook's Coattails: Analyst
MOST SHARED
- Super Bowl, Madonna Set New TV Audience Records
- Saudi Arabia Will Not Let Oil Go Above $100: Prince
- RBA Unexpectedly Holds Rates, Leaves Door Open to Cut
- Greece Is a ‘Sideshow’ for Global Investors: Fund Manager
- After US Oil Snub, Canada Focuses on China
- Taiwan's HTC Shares Limit Down After Weak Guidance
- Nuclear Comeback Could Boost Uranium Prices
- After Nailing Facebook, Top Strategist Makes Next Big Prediction
- Boeing 787 Manufacturing Problem
- Stock Gains Turn Hedge Fund Losers Into Winners
MOST POPULAR
HOT ON FACEBOOK
Verizon Wireless to Buy Alltel In $28.1 Billion Deal
Text Size 
Verizon Wireless agreed to buy Alltel [AT
Loading...
()
] for $28.1 billion, including $22.2 billion in debt, vaulting the combined company to first place in the U.S. mobile services market ahead of AT&T [T
Loading...
()
].
Verizon said the equity value of the deal would be about $5.9 billion.
Verizon Wireless, 55 percent owned by Verizon Communications [VZ
Loading...
()
] and 45 percent owned by Britain's Vodafone Group, said the deal would generate savings of $1 billion in the second year after closing.
It said it expects total savings with a net present value of more than $9 billion.
The deal comes only seven months after Alltel was bought by TPG Capital and Goldman Sachs Group's [GS
Loading...
()
] GS Capital Partners for $27.5 billion. (See the accompanying Faber Report on Verizon buying Alltel)
That deal was the largest ever private equity investment in the U.S. wireless industry, but it closed amid a mounting credit crisis that has curtailed the leveraged buyout boom.
Some analysts said Verizon could be in a good position to refinance Alltel's debt at a lower interest rate; others said that a deal could also help Verizon create savings from a network and handset perspective.
Overall, analysts said, the deal made sense.
"Put simply, they can run Alltel more efficiently than Alltel can," said Bernstein analyst Craig Moffett.
Verizon Wireless and Alltel, which had more than 13 million customers at the end of the first quarter, together would have more than 80 million customers. AT&T ended the first quarter with about 71 million subscribers.
The two groups also use the same CDMA wireless network technology.
- What happens at work when you can’t focus, and can’t do anything? Do you throw in the towel?
- BHP's CEO said he would buy investors a beer if he offloaded its nickel operations. One trader says it's time to pay up.
- The year of the dragon, a zodiac sign associated with wealth and power, is expected to lead to a baby boom in China.
- The epicenter of the oil rush is Williston, ND. Brian Shactman is there for a look at a town like no other.
- Which Super Bowl ad run by automakers is generating the greatest buzz? Phil LeBeau has some answers.
- We're so connected during the day it becomes difficult to disconnect at night. Here’s one way to get sleep.
Data is a real-time snapshot *Data is delayed at least 15 minutes
