Alltel is in talks with at least three telecom operators to sell off $10 billion worth of its fixed-line infrastructure. The company is looking to focus primarily on its lucrative wireless business. Insiders say Citizens Communications of Connecticut, CenturyTel of Louisiana and Valor Communications of Texas are each sizing up the deal. Alltel will reportedly spin off the lines first and then sell them to the preferred bidder in an all-stock transaction, allowing shareholders a stake in the sold business. In all, the assets up for sale service nearly 3 million customers in the Midwest. Dispatching the the fixed-line business would give the company a higher valuation on Wall Street and keep the company in line with the end user's preference for the wireless handset as their primary phone. Sprint Nextel is also looking into shedding its fixed-line business.
For more on Alltel's fixed-line asset sales:
- read this article from CBR