According to a fresh report out of CNBC's David Faber, Alltel may soon be acquired by Verizon Communications Inc. (NYSE: VZ). Faber just noted that the companies are in advanced talks to acquire the current private equity held telecom operator by TPG and GSCP, which are Texas Pacific Group and Goldman Sachs Capital Partners.
Alltel went private last year and has somewhere in the vicinity of 13 million wireless subscribers. The value of that deal was in the 427 to $27.5 billion range, and interestingly enough this new deal may not be at any or at much of a premium to that price.
If there is any company that can acquire this and not have all the credit rating issues and not run into multiple bank debt issues like private equity, then it is Verizon. There are a couple of other players like AT&T (NYSE: T) or some foreign-owned carriers that could swing it too.
Read more about the full implications for the sector and which other companies might be affected by this deal at 247WallSt.com.
Will TPG & GSCP sell Alltel to Verizon?
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