Is Alltel in play? | Arkansas Blog

Friday, December 29, 2006

Is Alltel in play?

Posted By on Fri, Dec 29, 2006 at 8:38 AM

Today's Wall Street Journal suggests the LR-based communications company might be:

Private-equity firms are beginning to circle Alltel Corp., making the nation's fifth-largest wireless operator another potential target amid a string of huge leveraged buyouts this year.

Wall Street is buzzing about a possible deal and private-equity shops are already exploring the idea, people familiar with the matter say.

Any Alltel deal would be large. The company has a market value of $21.7 billion and a debt load of just under $3 billion. Its stock is trading at a slight discount to similar carriers, based on projected earnings for next year before interest, taxes, depreciation and amortization.

Two factors are driving the deal chatter: Alltel is a pure cellphone operator, having recently spun off its slow-growing landline division, and it has low debt relative to other telecom carriers. Such balance-sheet strength would give a potential buyer plenty of room to pile debt on the company as part of its purchase plan, especially considering Alltel's Ebitda of roughly $4 billion annually.


Sign up for the Daily Update email
Favorite

Comments (3)

Showing 1-3 of 3

Add a comment

 
Subscribe to this thread:
Showing 1-3 of 3

Add a comment

More by Max Brantley

Readers also liked…

  • Speaking of the Clinton Foundation: Returns in maize and beans

    A reporter for Politifact, the Pulitzer Prize-winning fact-checking organization, sent a reporter to Africa to see where money given to the Clinton Foundation has been put to work. He found tangible results.
    • Sep 6, 2016
  • Trump's strangulation of Obamacare

    If he can't kill it outright, Donald Trump will do all he can to cripple Obamacare. Vox has detailed reporting on deep cuts in federal spending that support nonprofit agencies that help people sign up for coverage under the Affordable Care Act.
    • Sep 18, 2017
  • Arkansas: Land of .......

    Welcome to Arkansas: Land of cowardly politicians, discriminatory laws, inhumane turkey drops and lots and lots of Trump voters.
    • Oct 8, 2016

Most Viewed

  • Attorney General Rutledge rejects full marijuana legalization ballot initiative

    Speaking of weed, Attorney General Leslie Rutledge today rejected a proposed ballot initiative to fully legalize marijuana in the state.
  • The yawning teacher pay gap between Arkansas school districts

    Before Arkansas congratulates itself for outpacing Oklahoma on teacher pay, we should take a look at the huge disparity in salaries within the state. New teachers in Bentonville may make almost $46,000 a year, but new teachers in many other districts will start the 2018-19 school year earning $31,800 — less than the starting salary in Tulsa.
  • Anonymous Harding University students relaunch LGBTQ publication, campus security removes copies

    A group of anonymous Harding University students on Friday published an "HU Queer Press 2.0" zine, covering issues of gay rights at the private, Churches of Christ-affiliated campus in Searcy. A similar publication, "The State of the Gay at Harding University," set off a firestorm of controversy at Harding seven years ago. Shortly after the publication was distributed, campus security officers began gathering the copies of the zine and throwing them in the trash.
  • Finally, a memorial to the 21 boys who were burned to death at Wrightsville in '59

    It has been 59 years since 21 teen-aged boys incarcerated at the so-called Negro Boys Industrial School were burned to death in their locked dormitory. The Times wrote about the event in 2008, after the brother and mother of one of the boys approached the Times looking for someone to remember the event, and headlined the story "Stirring the Ashes." But on Saturday, a monument to the boys was placed at Haven of Rest Cemetery, where 14 of the boys were buried.
  • Trump's popularity among Arkansas Republicans remains overwhelmingly high

    In a recent survey of 676 likely GOP primary voters, the pollsters found 86 percent said they approved of Trump's job performance. Only 10 percent said they did not, and 4 percent said they didn't know.

Most Recent Comments

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation