Alltel sells wires to Valor for $9.1B

As expected, Alltel will sell its wireline business to Valor Communications Group for approximately $9.1 billion, making it a purely wireless company. Alltel's remaining assets include an estimated 11 million wireless customers in 34 states. The company expects to launch a $1 billion debt reduction program for the wireless business and also to repurchase $3 billion in stock over the two years following the spin-off. Alltel's wireline division is worth about $4.9 billion, plus another $4.2 billion in assumed debt. Valor will form a new company for the wireline business, based in Arkansas. Alltel shareholders will own about 85 percent of the new business.

For more on the Alltel, Valor deal:
- check out this press release