Alltel to Acquire CenturyTel Cell Unit

Alltel Corp. agreed to buy CenturyTel’s cellular business for $1.65 billion in cash. The deal involves more than 700,000 customers and will allow Little Rock, Ark.-based Alltel to expand into new markets in Arkansas, Louisiana, Michigan, Mississippi, Texas and Wisconsin.

After the deal is completed, Alltel will have 7.4 million wireless customers in 24 states. Alltel also is acquiring cellular licenses in Wisconsin and Iowa that cover 1.3 million potential customers.

Alltel shares fell $1.84 to $54.85 while CenturyTel lost 48 cents to $33.55, both on the New York Stock Exchange.