The deal amounts to about $27 billion involving complex discussions with private equity firms plus a group of banks that funded a buyout of Alltel last year. The group of banks hold $24 billion in financing that Verizon would buy off them.
Alltel phone plans include 13.2 million subscribers and combine Verizon’s and former Vodaphone’s subscribers to create more than 80 million customers. AT&T claims 72 million customers.
Such a large merger would draw attention from the FCC and Justice Department who regulate monopolies and licensing.
Alltel used to have residential phone plans then consolidated to cellphone service only with a wide coverage using the CDMA protocol. Alltel phone and cell phones was considered for takeover last year but at a higher price. Alltel also offers a pre-paid plan called Pay-as-you-go.
Alltel began in 1983 from a merger at the time of the AT&T Bell Telephone government forced breakup.
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