Alltel Plans to Buy Midwest Wireless

Rural wireless operator Alltel Corp. said today it will buy privately held Midwest Wireless Holdings Inc., gaining 400,000 customers in southern Minnesota, northern and eastern Iowa, and western Wisconsin.

Alltel will pay $1.075 billion in cash for Midwest Wireless’ licenses, customers and network assets, which include 1.9 PCS spectrum.

Alltel’s stock fell 11 cents on the news by midday Friday.

Alltel in early August bought Western Wireless for $6.5 billion. That acquisition gave it about 1.4 million more wireless customers in 19 states. Today’s news covers a population of 1.9 million with 850 MHz. Alltel expects the transaction to close in the first half of 2006.

The financial and legal advisers for Alltel in this transaction were Stephens Inc., Merrill Lynch and Kutak Rock LLP. The financial advisers for Midwest Wireless were Bear Stearns and Greene, Holcomb and Fisher LLC. The legal adviser for Midwest Wireless was Leonard, Street and Deinard.