Alltel agrees to $27.5-billion buyout

Alltel Corp., owner of one of the nation’s largest cellphone networks, said Sunday that it had agreed to a $27.5-billion buyout by a pair of investment firms.

The purchase still must be approved by Alltel shareholders. The company said in a news release that it had signed an agreement to be acquired by TPG Capital, formerly Texas Pacific Group, and GS Capital Partners -- Goldman Sachs Group Inc.’s leveraged-buyout unit.

“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,” Alltel Chief Executive Scott Ford said in the statement.

“This transaction,” he added, “also ensures our customers can continue to rely on Alltel to deliver high-quality service and leading-edge products.”

The agreement calls for the two firms to acquire all of the outstanding common stock of Alltel for $71.50 a share in cash. According to Alltel, that represents a 23% premium over Alltel’s price before word of a possible buyout first appeared in the media Dec. 29.

Trading in Alltel’s stock closed Friday at $65.21, down 14 cents from the day before. The $71.50 price represents a premium of only about 10% over Friday’s level.

The deal, if approved by shareholders and regulators, is expected to close during the fourth quarter of this year or the first period of 2008, Alltel said. The statement said the purchase was also subject to “customary closing conditions.”