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Mergers and Acquistions News

Categories: Telecoms

November 7th 2008, 15:47PM

An acquisition which would see the creation of the US's largest wireless internet carrier has cleared another hurdle with the news it has been approved by the Federation Communications Commission (FCC).

The body voted to allow the $28 billion (£17 billion) purchase of Alltel by Verizon, reports Associated Press (AP).

Although no FCC member voted against the move, there were two partial dissents from the five member panel, meaning the move was not technically approved on a unanimous basis.

The commission also attached a number of conditions to the deal, including a clause which will see Verizon Wireless honour Alltel's pre-existing roaming contracts for a period of four years.

As well as a paying cash consideration of $5.9 billion, Verizon will take on $22.9 billion worth of debt.

The "merger will help empower consumers to use wireless devices and applications of their choice on open network", an FCC statement said.

Last week, the AP reported that the US justice department had agreed that the deal should go ahead.ADNFCR-1833-ID-18865273-ADNFCR

 

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