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Private Equity Binge Goes Wireless

Goldman Sachs, Texas Pacific Group will buy Alltel for $27.5B

By J. Kelman,  Newser User

Posted May 21, 2007 10:18 AM CDT
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(Newser) – A consortium led by the Texas Pacific Group and Goldman Sachs yesterday snapped up the nation's fifth-largest wireless provider for $27.5 billion, the largest telecom buyout ever. The $71.50 per share offer for Alltel awaits shareholder and regulatory approval and comes weeks before a scheduled auction for the company, which has been seen as a prime acquisition target.

The preemption sparked grumbling in the private equity community, the New York Times Dealbook reports, but Alltel's CEO says the company consulted other potential bidders before signing off. To some, the biggest Alltel shocker is the small ripple it made in the business media. "In these days of mega-buyouts, it’s just one more on the list," writes DealBreaker.com's John Carney.

Alltel Corp., employees arrive at one of the buildings at the company's headquarters in Little Rock, Ark., Monday, May 21, 2007, after a pair of investment firms agreed to acquire Alltel , the fifth-biggest U.S. wireless company and owner of the nation's largest geographic network, in a deal worth $24....
Alltel Corp., employees arrive at one of the buildings at the company's headquarters in Little Rock, Ark., Monday, May 21, 2007, after a pair of investment firms agreed to acquire Alltel , the fifth-biggest...   (Associated Press)
An Alltel Corp., employee demonstrates a new wireless device at a Little Rock, Ark., store in this Feb. 20, 2007 file photo. Wireless voice and data communications company Alltel Corp. said Friday, April 27, 2007 its first-quarter profit fell 23 percent from year-ago results that were boosted by income from...
An Alltel Corp., employee demonstrates a new wireless device at a Little Rock, Ark., store in this Feb. 20, 2007 file photo. Wireless voice and data communications company Alltel Corp. said Friday, April...   (Associated Press)
An Alltel Corp., sign is displayed on one of the buildings at the company's headquarters in Little Rock, Ark., Monday, May 21, 2007. A pair of investment firms agreed to acquire Alltel , the fifth-biggest U.S. wireless company and owner of the nation's largest geographic network, in a deal worth...
An Alltel Corp., sign is displayed on one of the buildings at the company's headquarters in Little Rock, Ark., Monday, May 21, 2007. A pair of investment firms agreed to acquire Alltel , the fifth-biggest...   (Associated Press)
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