Verizon to Formally Acquire Alltel in $28 Billion Deal - KAIT Jonesboro, AR - Region 8 News, weather, sports

Little Rock, AR

Verizon to Formally Acquire Alltel in $28 Billion Deal

LITTLE ROCK, AR (KAIT) - Verizon Wireless announced this morning that it will acquire Alltel in a deal worth $28 billion.

Verizon says it will acquire the equity of Alltel for approximately $5.9 billion.  The companies are hopeful that the merger will clear by the end of 2008.

Alltel CEO Scott Ford will remain with the company "until the merger is completed."

Verizon said it expects to realize synergies with a net present value, after integration costs, of more than $9 billion, driven by reduced capital and operating expense savings.  Synergies are expected to generate incremental cost savings of $1 billion in the second year following closing.

Alltel has more than 13 million customers in 34 states, including 57 rural markets that Verizon Wireless reportedly does not serve.

 

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