M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

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Monday, May 21, 2007

Alltel Dials PE

Alltel Corp., the cell-phone network operator, today announced that it had agreed to be acquired by TPG Capital and GS Capital Partners, in a transaction valued at approximately $27.5 billion.  TPG Capital and GSCP will acquire Alltel in a merger transaction paying $71.50 per share in cash.

The deal has already been criticized for its small premium, and the press release offers few details of the transaction.  But it appears that there is no "go-shop", break fees have yet to be disclosed and it is uncertain if there is any financing condition on the deal.  The absence of a "go-shop" is a bit puzzling, it could have at least provided the buyers some aesthetic cover particularly since it has been reported that Alltel has been throughly shopped over the past few months and no buyers have emerged.  I'll have more once the merger agreement is filed:  it looks like Alltel is going to wait out the two business days they have to file.  In particular, Alltel CEO Scott Ford has already agreed to continue as CEO with the private company and so it will be interesting to see his arrangements.   

http://lawprofessors.typepad.com/mergers/2007/05/alltel.html

Going-Privates, Takeovers, Transaction Defenses | Permalink

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