By Lisa Kerner
Charlotte, N.C., May 21 - Alltel Corp. entered into a definitive merger agreement to be acquired by TPG Capital and GS Capital Partners for $71.50 per share in a cash transaction valued at approximately $27.5 billion.
The per-share price is a 23% premium over Alltel's closing share price prior to Dec. 29, 2006 reports of a potential transaction.
Alltel's board has unanimously approved the merger agreement, and shareholders will vote on the proposed transaction at a special meeting on a date to be announced.
The company intends to pay its regular quarterly common share dividend until the deal closes in the fourth quarter of 2007. Alltel's chief executive officer Scott Ford will continue to lead the Little Rock, Ark.-based wireless network provider.
"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," Ford said in a company news release. "TPG and GS Capital are long-term investors who are willing to make the investments necessary to continue to grow our wireless business in all of our markets."
Merrill Lynch & Co., Stephens Inc. and J.P. Morgan Securities Inc. advised Alltel, and Wachtell, Lipton, Rosen & Katz acted as legal adviser. Alltel is the owner and operator of the nation's largest wireless network and has 12 million wireless customers.
TPG Capital is the global buyout group of TPG, a private investment firm with offices worldwide, including in San Francisco, London, Hong Kong and New York.
GS Capital is the private equity vehicle of the Goldman Sachs Group, Inc.
| Acquirers: | TPG Capital and GS Capital Partners
|
| Target: | Alltel Corp.
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| Transaction value: | $27.5 billion
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| Price per share: | $71.50
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| Announcement date: | May 21
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| Expected closing: | Fourth quarter 2007
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| Stock price for target: | NYSE: AT: $65.21 on May 18
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