AT&T to Buy Alltel’s Retail Operations

by Tom Taulli | January 23, 2013 10:38 am

AT&T T-Mobile[1]AT&T (NYSE:T[2]) has agreed to purchase[3] Alltel’s retail wireless business, which is a part of Atlantic Tele-Network (NASDAQ:ATNI[4]). The deal comes to roughly $780 million.

A few years ago, Verizon (NYSE:VZ[5]) purchased Alltel. But some of the assets had to be unloaded because of regulatory concerns, which included the retail operations.

The Alltel unit generated about $350 million in revenues during the first nine months of 2012, with operating profits of $34 million. It has about 585,000 customers, which are mostly in the rural areas of Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina.

So far in today’s trading, the shares of AT&T are up 0.4% to $33.74.

Tom Taulli runs the InvestorPlace blog IPO Playbook[6], a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook[7]” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders[8].” Follow him on Twitter at @ttaulli[9]. As of this writing, he did not hold a position in any of the aforementioned securities.

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