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FCC approves Alltel's $26.3 billion sale to private equity groups Saturday, Oct 27, 2007 By Jason Wiest Arkansas News Bureau LITTLE ROCK - The Federal Communications Commission late Friday approved Alltel Corp.'s merger with TPG Capital and GS Capital Partners, the final regulatory hurdle for the $26.3 billion deal. Alltel said it expects the buyout to close before Thanksgiving Day, Nov. 22. Alltel shareholders will receive $71.50 per share in cash. The FCC found the deal would not result in competitive harm and would serve the public interest, convenience and necessity. However, the agency did stipulate one condition, imposing an interim cap on Alltel's access to the Universal Service Fund, a pool of money reserved for building out rural wireline and wireless phone service. The FCC is considering changes to the fund to address issues related to the distribution of support and to ensure the fund will be sustainable. Alltel will be capped at the amount of money it received between January and June on an annualized basis. One exception applies to the FCC's condition. Alltel will not be subject to the interim cap if it meets certain technical thresholds related to its E911 service and if it can prove cost data supports more funding for providing service to rural areas. The FCC said the deal would provide Alltel with additional money that would enable the company to acquire additional airwaves in the FCC's upcoming 700 MHz auction, which is expected to raise $15 billion. The spectrum is said to be a crucial platform for the next generation of wireless services. Alltel spokesman Andrew Moreau would not comment on whether the company would participate in the auction. In regulatory documents filed with the FCC in September, however, Alltel officials said the commission's timing of approval for the deal was critical to "leave sufficient opportunity for Alltel to file a short-form application to participate in the 700 MHz auction." |
