Verizon-Alltel Merger Gets Green Light from FCC
The Federal regulators following the DOJ’s approval last week have approved the $28.1 billion merger of Verizon Wireless (VZ) with wireless carrier Alltel, announced in June. The combination of both companies creates the nation’s largest wireless carrier and represents a strategically powerful collection of assets in the communications industry, which despite economic conditions - continues to remain an exciting growth market.
According to AP - the Federal Communications Commission (FCC) decided Tuesday to allow Verizon Wireless to move ahead with the merger. There were two partial dissents by the two Democrats on the five-member panel.
FCC attached several conditions to the approval, including a requirement that Verizon continue to honor Alltel’s existing roaming agreements for four years.
Verizon’s $28.1 billion acquisition represents the purchase of $5.9 billion in Alltel’s equity, while assuming $22.2 billion of Alltel’s debt.
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.
