Alltel CEO Pledges Continued Growth
LITTLE ROCK, Ark. (AP) -- Alltel Corp.'s chief executive says the wireless company will continue to pursue its strategy of growing in rural markets, even though it will be carrying a tremendous debt load to finance its $24.7 billion buyout by two private investment firms.
A day after Alltel announced that TPG Capital and GS Capital Partners would buy the company for $71.50 per share, Alltel CEO Scott Ford said Monday that the company will still be able to grow. He noted that it has nearly completed a $3 billion share repurchase program, has been paying regular dividends and has been spending on capital improvements.
The added debt service -- estimated at $23 billion -- won't hinder the company when the other expenses are stripped away...
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A day after Alltel announced that TPG Capital and GS Capital Partners would buy the company for $71.50 per share, Alltel CEO Scott Ford said Monday that the company will still be able to grow. He noted that it has nearly completed a $3 billion share repurchase program, has been paying regular dividends and has been spending on capital improvements.
The added debt service -- estimated at $23 billion -- won't hinder the company when the other expenses are stripped away...
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This is a done deal. No other bids will come in for Alltel. My 200+ shares will be accepting this bid.
I see Alltel around for another 3 to 5 years, as long as, the company is still producing a profit.
However, we will know the intension of TPG and GS when the 700 MHz auction takes place.
I see Alltel around for another 3 to 5 years, as long as, the company is still producing a profit.
However, we will know the intension of TPG and GS when the 700 MHz auction takes place.
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Current rumor is that they're already looking at international carriers to sell to, specificly Japanese carriers.
That is just a rumor though, and I wouldn't put a whole lot of thought in to it, other than, wow, we could roam to Japan...cheaper.
That is just a rumor though, and I wouldn't put a whole lot of thought in to it, other than, wow, we could roam to Japan...cheaper.
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I don't ANY company foreign or domestic buying Alltel Wireless from TPG & GS anytime soon. The Alltel acquisition probably won't close until the 1st quarter of '08. Then for TPG & GS to sell Alltel they would want top dollar. Figure this; 27.5 billion (Including debt) was a high figure for to acquire Alltel. If Alltel grows and adds 5-8 million customers then I could see a company trying to purchase at a higher figure (30-35 billion). It would not be a smart business move to acquire Alltel at higher price without reasonable growth (from its current status).
As it stands, I see Alltel functioning for 3 to 7 years (max) and then most likely sold in pieces.
As it stands, I see Alltel functioning for 3 to 7 years (max) and then most likely sold in pieces.
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Money is not going to be that much of a concern for a Japanesse Carrier to buy alltel. Within reason. THey want into the US market bad. They have made a deal with I beleive sprint to be a MVO. It would be cool to see a WCDMA phone for use in Japan and a CDMA phone for use in the US. But I wouldn't hold my breath.
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Understood.
I think it would be insane to acquire Alltel Wireless for more than 30 billion. That's the max price for Alltel Wireless (at its current status). AT&T and Verizon placed bids on Alltel but came in below the winning bid of 27.5 billion. It appears they felt the same.
TPG & GS will milk the profits out of Alltel and will use the asset to fund other transactions. If a foreign company is willing to pay more than 30 billion to acquire Alltel Wireless from TPG & GS (assuming no reasonable growth) then go for it. To me, that would be one company not worth investing in.
I think it would be insane to acquire Alltel Wireless for more than 30 billion. That's the max price for Alltel Wireless (at its current status). AT&T and Verizon placed bids on Alltel but came in below the winning bid of 27.5 billion. It appears they felt the same.
TPG & GS will milk the profits out of Alltel and will use the asset to fund other transactions. If a foreign company is willing to pay more than 30 billion to acquire Alltel Wireless from TPG & GS (assuming no reasonable growth) then go for it. To me, that would be one company not worth investing in.
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