Will Alltel sell? | Arkansas Blog

Friday, May 18, 2007

Will Alltel sell?

Posted By on Fri, May 18, 2007 at 7:36 PM

Here's the latest from WSJ:

The buyout train may be approaching Alltel station.

The wireless company, which has a market cap of $22.5 billion and has been exploring strategic options, including a leveraged sale, for months, is more likely that not to do some kind of a deal, at least if the credit default swap and stock markets are to be believed. According to a Banc of America research report yesterday that we got our hands on this morning, the rise to record levels of Alltel CDSs — instruments through which traders can bet on the future creditworthiness of companies — indicates that the market is putting the odds of some kind of a deal at 60%.

Meanwhile, Alltel’s stock has stayed at the elevated peak of more than $65 a share it reached following this Wall Street Journal article last week that reported on the private-equity groups that have formed to chase the company. (The stock closed at $65.63 Wednesday.) The company’s cancellation of executive appearances at a number of conferences, including a wireless industry powwow, has fed speculation that a deal is coming. The BofA analyst, David Barden, says that in a buyout Alltel could fetch $71 a share.

Of course, a buyout to groups such as the one that includes Blackstone Group and Providence Equity Partners isn’t a foregone conclusion, especially since Alltel is clamping down on the amount of debt any such buyer can put on the company. But even if it doesn’t pursue a sale to a buyout firm or another phone company — such as AT&T, Verizon Communications or Sprint Nextel (BofA thinks the odds of that are just 10%) — Alltel could do its own version of a leveraged buyout, loading up on debt to make a big payment to shareholders including the family of CEO Scott Ford.

From the ArkTimes store

Favorite

Comments (2)

Showing 1-2 of 2

Add a comment

 
Subscribe to this thread:
Showing 1-2 of 2

Add a comment

More by Max Brantley

Readers also liked…

  • Kenneth Starr: A comment from Betsey Wright

    Betsey Wright, former President Bill Clinton's chief of staff when he was Arkansas governor, responds bitterly to a New York Times article today quoting Whitewater Prosecutor Kenneth Starr's warm words about Clinton. She can't forget the lives Starr ruined in Arkansas.
    • May 24, 2016
  • Payday lenders on the march at legislature

    Payday lenders are working hard to get legislative cover for the reintroduction of their usurious loan business to Arkansas. Some are fighting back.
    • Mar 10, 2017
  • John Goodson and others add lawyers for hearing on forum shopping

    Lawyers facing federal court sanctions for forum shopping a class action insurance case have brought in new legal guns from out of state to fight potential sanctions.
    • May 26, 2016

Most Shared

  • Conflicts of interest in the legislatures

    The Center for Public Integrity and the Associated Press collaborated for a project aimed at highlighting state legislators whose lawmaking might be affected by private business interests.
  • Industrial hemp pilot program coming soon to Arkansas

    One of the booths at this week's Ark-La-Tex Medical Cannabis Expo was hosted by the Arkansas Hemp Association, a trade group founded to promote and expand non-intoxicating industrial hemp as an agricultural crop in the state. AHA Vice President Jeremy Fisher said the first licenses to grow experimental plots of hemp in the state should be issued by the Arkansas State Plant Board next spring.
  • Cats and dogs

    I've always been leery of people who dislike animals. To my wife and me, a house without dog hair in the corners and a cat perched on the windowsill is as barren as a highway rest stop. We're down to three dogs and two cats, the smallest menagerie we've had for years.

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation