Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



AT&T to Buy Atlantic Tele-Network's Alltel for About $780 Million

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

On Tuesday, AT&T (NYSE: T  ) announced it has agreed to buy the Alltel domestic retail wireless business of Atlantic Tele-Network (NASDAQ: ATNI  ) in an all-cash transaction valued at approximately $780 million.

Atlantic, which runs Alltel through a subsidiary based in Little Rock, Ark., says the business currently boasts a base of 585,000 customers across six southern states, produced $350 million in revenues over the first nine months of 2012, and generated $34 million in operating profit. The transaction is expected to close in H2 2013.

Subsequent to closing, Atlantic says its business "will consist of Commnet, serving rural communities primarily in the Southwest U.S.; Sovernet, serving residential and business customers in New England; ION, serving rural communities in New York State; GT&T, serving Guyana; CellOne, serving Bermuda; and Choice, Islandcom, and Mio, serving portions of the Caribbean islands."

As for the cash generated from the Alltel sale, Atlantic says it will consider all possibilities, including spending the money on new acquisitions or reinvesting in its remaining businesses, paying down debt, and/or increasing its dividend. As of today, Atlantic has about $282 million in debt, meaning it could extinguish the debt entirely from AT&T's payment. Atlantic currently pays shareholders a $1-per-share dividend, resulting in a yield of about 2.5%.

Shares of Atlantic Tele-Network are up 12.2% on the news at $44.16. AT&T shares are up 0.7% at $33.67.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2208844, ~/Articles/ArticleHandler.aspx, 9/28/2016 9:51:31 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,271.04 42.74 0.23%
S&P 500 2,162.13 2.20 0.10%
NASD 5,309.85 4.14 0.08%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 9:33 AM
ATNI $66.81 Down +0.00 +0.00%
Atlantic Tele-Netw… CAPS Rating: *****
T $40.88 Down -0.58 -1.40%
AT and T CAPS Rating: ****