Alltel to become purely a wireless company
Alltel announced its intention to spin off the company's wireless business and combine with the wireline provider VALOR Communications for $4.9 billion. The new company will also assume Alltel's debt, which amounts to $4.2 billion. Alltel shareholders will own 85 percent of the merged, still unnamed company. The deal is expected to be completed by the middle of the year 2006. After its completion Alltel will be able to focus on its wireless service. It will become a pure wireless company with 11 million customers in 34 states. Alltel also plans to concentrate mainly on developing and expanding CDMA network for their subscribers.