Is Verizon Keen To Buy Alltel?

Take-over rumors are in the works that Alltel may be up for sale, and Verizon might be a bidder. CNet looks at both sides, with one analyst saying that a merger between Verizon and Alltel makes sense on a number of levels, including that it would become the largest operator in the US. The corresponding point of view is that Verizon is better of waiting until the 700 MHz spectrum auction later this year, since it will then be able to build its own network for less than the $30 billion price tag that has been put on Alltel. Verizon would likely bid for Alltel if it looked like a major competitor was going for it, but both sides agree that none of the other big four are likely to do so (Sprint is still integrating the Nextel merger and Cingular and T-Mobile use GSM rather than CDMA)… private equity could get it.

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