bloggingbuyouts

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.

Clearwire Corp. (NYSE: CLWR) -- volatility elevated on renewed takeover chatter. CLWR, founded by Craig McCaw, builds and operates wireless broadband networks that enable internet communications. CLWR is recently up $1.13 to $24.12 on renewed and unconfirmed takeover chatter. CLWR announced partnerships with Sprint Nextel Corp. (NYSE: S) and DirectTV Group (NYSE: DTV) over the last three months. CLWR completed a $1 billion senior secured loan on 8/15/07. Soleil Securities said on 9/11, "with the laptop card about to launch by month's end, and all the strategic and financial developments that were not in place at CLWR's $25 IPO in March, we think the risk/reward is better than 50%/50% on the upside." Option volume was heavy on 9/7 & 9/10/07. CLWR September option implied volatility is at 74; October is at 63 above its 25-week average of 53 according to Track Data, suggesting larger risk.

Build a Bear Workshop (NYSE: BBW) -- call volume and volatility spikes on canceled appearance. BBW, a company providing make-your-own stuffed animal, interactive retail entertainment experience, is recently up $1.40 to $18.44. BBW cancelled a previously scheduled appearance at an upcoming conference because of "scheduling conflicts." Buckingham Research says, "we believe that the stocks current valuation doesn't price in a sale and we believe that BBW shares are interesting at current levels." BBW is expected to report EPS on 10/18. BBW announced on 6/28/07 it retained Lehman Brothers (NYSE: LEH) to assist in potential strategic alternatives to enhance shareholder value. BBW call option volume of 3,235 contracts compares to put volume of 69 contracts. BBW September option implied volatility is at 100, above a level of 54 from 60-minutes ago. BBW October option implied volatility of 81 is above its 26-week average of 40 according to Track Data, suggesting larger price risks.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

EchoStar(NASDAQ:DISH) implied volatility of 37 above 26-week average of 29. DISH is recently down $1.23 to $38.61. DISH has a market cap of $17.4 billion with long term debt of $5.9 billion. As of 3/31 DISH had $2.1 billion in cash and short term investments, 14 owned or leased in-orbit satellites with over 13.4 billion subscribers. DISH had 2006 total revenue of $9.8 billion. AT&T (NYSE:T) has been frequently chattered in the past as interested in DISH because of its 2,300 video and audio channel conduits. DISH September option implied volatility of 37 is above its 26-week average of 29 according to Track Data, suggesting larger price fluctuations.

Daily Mergers Update provided by Stock Specialist Paul Foster of theflyonthewall.com.

I've mused on possible acquisitions of U.S. wireless carriers Sprint Nextel (NYSE: S) and Alltel Wireless (NYSE: AT) before, and the rumor mill is again heating up on Alltel as of this week. The fifth-largest wireless carrier in the U.S. may be looking for a possible private equity suitor. Buyout candidates include Blackstone Group with Providence Equity Partners, TPG Capital and the private-equity arm of Goldman Sachs Group, and Carlyle and KKR, according to a report in The Wall Street Journal today.

While the unnamed sources for all this acquisition/LBO street blabber still remain at large, it follows in the footsteps of all kinds of buyout rumblings that have involved Alltel Wireless from late 2006 to the present. According to the Journal, all three private equity consortiums have begun meeting with Alltel's management, and we're sure that if that is really happening, something's afoot. As one would expect, representatives from Alltel and all three groups could not be reached for comment. Yet.

Acquisition mania has been fueled by executive comments since February, when a conference call revealed that Alltel was weighing all strategic options. In general, that means that the company is looking to be bought and possibly merged with another like company (namely Verizon Wireless (NYSE: VZ)) or taken private (which I highly doubt). Another possible merger suitor would be Sprint Nextel, which runs a compatible wireless network and would love to fold in Alltel's customers in an effort to catch up to AT&T (NYSE: T) and Verizon. And the rumor mill keeps churning . . .

With Sprint Nextel (NYSE: S) bleeding customers and cash lately, CEO Gary Forsee may see 2007 mark the end of his career at the telecom giant. Sprint's Q1 numbers were way below the competition, as the company's botched acquisition of Nextel in 2005 has proved disastrous for the combined company. Why? Well, Sprint management must have given Nextel subscribers the cold shoulder after the deal closed, which is too bad considering Nextel wireless subscribers brought in the highest monthly bill and were the most loyal. Well, they were before the merger anyway.

It's been rumored that Verizon Wireless (45% owned by Europe's Vodafone) was possibly interested in a deal to acquire Sprint Nextel. In the wireless telecommunications game here in the U.S., mega-mergers have been a mainstay. Verizon was eclipsed by Cingular Wireless (now AT&T (NYSE: T)) a few years ago when Cingular Wireless bought the "old" AT&T Wireless. With Sprint Nextel having a poor reputation but a huge wireless customer base of over 53 million, are things ripe for a corporate takeover or even a buyout by private equity?

Verizon Wireless uses the same technology as Sprint Nextel, so the acquisition and fold-in would be technically very easy, although many wireless licenses would have to be disposed of somehow and the duplication in equipment would be an issue. How about Alltel Wireless, the fifth-largest wireless carrier in the U.S.? Like Sprint Nextel, Alltel uses the same technology as Verizon Wireless, making it a viable takeover candidate as well.

A purchase of Sprint Nextel (or a merger) or Alltel Wireless by Verizon Wireless would again put Verizon Wireless atop AT&T as the largest wireless carrier in the U.S. -- by a huge margin. Speculation has run rampant for a little under a year that this would happen, but no action so far. Whatever the interests of private equity, the rapid combination of wireless companies in the U.S. is far from over.

"The saga surrounding proposed acquisition of Telecom Italia by América Móvil (NYSE: AMX) continues," says The Global Stock Investor editor Nick Vardy – whose commentary on the situation was featured in my post last week, Italian Buyout?

AT&T (NYSE: ATT), América Móvil's negotiating partner, has since pulled out of talks with Pirelli about acquiring a 33% stake in Olimpia SpA – which Vardy notes, is a shell company that controls Telecom Italia.

América Móvil, he points out, quickly issued a press release that its bid remains in force. Vardy speculates, "One of its options would be to look for an Italian partner, which would make its bid more palatable to Italian regulators."

Vardy continues to believe that the acquisition of Telecom Italia would be a boon for América Móvil. He notes that Telecom Italia owns 50% of TIM Brazil -- the country's second-largest wireless network -- as well as 50% of Telecom Argentina and 50% of the largest wireless carrier in Bolivia.

Vardy suggests, "Although Goldman Sachs noted that AT&T's exit increases the likelihood that América Móvil also withdraws from the Olimpia talks, don't count out Carlos Slim -- now the world's #2 wealthiest man -- just yet." The advisor concludes, "Regardless of the outcome of the Olimpia talks, América Móvil's stock remains a strong buy."

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.