Vodafone snaps up Alltel for $28.1 billion

Ahhhh. That’s it. I’m feeling it now, from Vodafone! A feeling of control, of might, of domination! The Master of the Universe is back. It’s about time.

The sleeping Big Red has woken up and snapped up Alltel, America’s 5th largest mobile operator with 13 million customers across 34 states.

Commenting on the Transaction, Arun Sarin, Chief Executive of Vodafone, said:
“We expect the acquisition of Alltel to significantly increase the value of our 45% interest in VZW
through the realisation of substantial in-market synergies and to reinforce its leading position in the
world’s largest mobile market by revenues. Whilst VZW’s free cash flows will initially be deployed in
reducing net debt, the VZW Board has agreed to conduct an annual dividend review process and
to the payment of enhanced tax distributions.”

Key highlights

Anticipated benefits of the Transaction include:

– Reinforces VZW’s position as the leading mobile operator in the US market with 80 million
customers and pro-forma CY2007 revenues of US$52.7 billion
– NPV of cost and capex synergies expected at over US$9.0 billion, after integration costs.
Significant value creation arises from the in-market nature of the transaction. Annual run-
rate of synergies of US$1.5–1.7 billion by CY2011