News swirled over the weekend that Alltel had agreed in principle to a sale of the company to private equity groups. On Sunday night, Alltel CEO Scott Ford signed a merger agreement with Texas Pacific Group and Goldman Sachs Capital Partners for about $27.5 billion.
Ford said that TPG and GS have bought Alltel as a platform to grow into the wireless industry, not to break it up and sell it. “This is a group of investors that want to invest in the wireless business. They want to grow the wireless business. They are committed to both the urban markets and the rural markets that we serve… We will continue to invest in our business as we have in the past,” he said.
The Arkansas Democrat Gazette doesn’t seem as confident. Today’s lead editorial is a plea for the new owners, whomever they may be, to keep the company in Little Rock. Unfortunately, the editorial is only available to subscribers. However, Arkansas Business publisher Jeff Hankins notes, “If it had been a publicly traded company inquiring these companies than we would have stood to lose hundreds of jobs because they wouldn’t have kept all of the back ended administrative jobs of these companies.”
It seems this deal involved a bit of good luck. Ford admitted, “If Verizon or AT&T had been there and paid more, we would have sold it to them.”
If finalized, the Alltel deal will be the second major buyout of a Little Rock based company in the past week. Wednesday, Acxiom Corporation announced it had agreed to a $3 billion sale to ValueAct Partners and Silver Lake Partners.
The New York Post reports that takeover talk has been fueled in recent days for Arkansas-based department store chain Dillard’s.