Southeastern US telco Alltel has announced that it will pay $1.65 billion in cash for CenturyTel’s wireless business. The deal will give Alltel 700,000 more mobile subscribers.
Under the terms of the deal, Alltel will drop its previous bid for the rural telecoms group, while agreeing not to bid for the rest of CenturyTel for one year. Louisiana-based CenturyTel says it will use the money to help fund its $2.16 billion deal for Verizon’s access lines.
Only seven months ago, Alltel launched a $6 billion hostile bid to buy CenturyTel. CenturyTel reacted by suing Alltel and announced it was seeking to split its wireless business firm its local telephone operations.