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The U.K.'s Vodafone Group plc confirmed Thursday that its
Verizon Wireless joint venture is in advanced talks about buying Alltel
Corp. from its private equity owners.
Verizon Wireless is proposing an offer of around $27 billion, just shy of the $27.5 billion TPG Capital and Goldman Sachs Capital Partners paid for the business in November.
The acquisition of Alltel would catapult Verizon Wireless to the top slot in U.S. wireless services, overtaking AT&T Inc. It would mark a dramatic swan song for Vodafone's outgoing CEO Arun Sarin, who has resisted calls to sell its 45% holding in Verizon Wireless during his five-year tenure. Verizon Communications Inc. holds the majority stake. The acquisition would come at a time when TPG Capital and Goldman Sachs Capital Partners have few ready exits and therefore may be tempted by a swift turnaround. The Little Rock, Ark., wireless provider also carries significant leverage following the LBO. Alltel is said to be one of the biggest names among the $12 billion in debt that Citigroup Inc. unloaded to Apollo Management LP, Blackstone Group LP and TPG Capital earlier this year. Verizon Wireless has a pending $2.67 billion buyout of Rural Cellular Corp., which, like Alltel, operates in less-populated markets. Verizon Wireless was a big spender in the FCC's auction of 700 Mhz wireless broadband licenses earlier this year. The government will have to consider how it evaluates spectrum holdings following the auction. - Chris Nolter, Laura Board and Renee Cordes See full story on TheDeal.com See related story on TheDeal.com: Alltel goes private in $27.5B deal See Dealscape: Citigroup set to sell $12B in loans to PE firms Categories Deal Video
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