Western Wireless Holders OK Alltel Merger; Deal To Close Monday

LITTLE ROCK, Ark. -(Dow Jones)- Shareholders of Western Wireless Corp. (WWCA) approved its acquisition by Alltel Corp. (AT) for about $4.5 billion, plus the assumption of debt, clearing the last hurdle to a merger that was seen as the first of many among smaller, regional wireless carriers.

Under the deal terms, Alltel will issue about 54.3 million common shares and pay $933.4 million. The transaction is expected to close on Monday.

An Alltel spokesman said the total consideration is less than the initial terms announced in January because those earlier figures were estimates. Alltel had said then that it would issue 60 million shares and pay $1 billion. The spokesman also noted that Alltel's share price has surged about $10 since January. Alltel shareholders are not required to vote on the merger, he added.

Earlier this month, the Federal Communications Commission approved Alltel's proposed acquisition, conditioned on Alltel's divesting itself of certain Western Wireless customer, infrastructure and cellular spectrum assets. The Justice Department also cleared the deal the week before, under the same conditions.

After the merger, the enlarged Alltel would remain the country's sixth-biggest U.S. wireless carrier, with 10 million domestic cellular customers and an additional 1.6 million overseas. Combined, Alltel and Western had revenue of about $10 billion last year.

-Judy Lam; Dow Jones Newswires; 201-938-5400; AskNewswires@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 29th July 2005