Alltel in Talks to Buy Western Wireless, Source Says"

NEW YORK -- Alltel Corp. (AT), the country's sixth-biggest cellular carrier, is close to a deal to acquire Western Wireless Corp. (WWCA), a person familiar with the talks told The Wall Street Journal on Thursday.

If the deal is completed, Alltel would remain the country's sixth-biggest carrier, operating in various regions across the country, with nearly 10 million U.S. subscribers. Western also has more than one million subscribers overseas.

The talks aren't finalized and could still fall apart.

While the industry has seen the rapid consolidation in the past year of national carriers -- Cingular Wireless has purchased AT&T Wireless, and Sprint Corp. (FON) and Nextel Communications Inc. (NXTL) have announced plans to merge -- an Alltel-Western deal could be the first of multiple deals to consolidate the country's smaller, regional carriers.

-By Jesse Drucker, The Wall Street Journal; 212-416-3530

-By Dennis K. Berman, The Wall Street Journal; 212-416-3284

(END) Dow Jones Newswires"

Posted to the site on 6th January 2005