Alltel Corp. said it has begun a strategic review related to the possible spinoff of its wireline operations that serve around 3 million customers in 16 states.
The company announced earlier this year that it would undertake a review of possible strategic alternatives for its wireline business following announced plans to acquire regional wireless operator Western Wireless Corp., which was completed last month. Following the acquisition, Alltel has said it now generates nearly 70 percent of $10 billion in total annual revenues through its wireless operations.
Alltel said the strategic review has been under way for several months, and the formal review will include assessing the “market appetite for the wireline repositioning options that Alltel’s review concluded could enhance value for its stockholders.”
Alltel added that “early indications are encouraging,” and that it will provide further updates when it announces third-quarter results next month.
Alltel also has been in the process of selling Western Wireless’ international operations, including a recent agreement to sell its Austrian Tele.ring Telekom Service GmbH to Deutsche Telekom AG subsidiary T-Mobile Austria GmbH for $1.6 billion. Western Wireless announced in July that it had agreed to sell its Irish operation Meteor Mobile Communications Ltd. to a subsidiary of Eircom Group plc for $500 million.
Western Wireless International still has wireless interests in several other countries, including Slovenia, Georgia, Bolivia, Haiti, Ghana and Cote d’ Ivoire.
