by Tom Taulli | January 23, 2013 10:38 am
AT&T (NYSE:T) has agreed to purchase Alltel’s retail wireless business, which is a part of Atlantic Tele-Network (NASDAQ:ATNI). The deal comes to roughly $780 million.
A few years ago, Verizon (NYSE:VZ) 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, 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” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
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