Verizon not backing out of $28.1 billion Alltel buyout

Despite the current economic storms plaguing the U.S., Verizon Wireless won’t be calling its $28.1 billion buyout deal with Alltel a no-go. In fact, the company says the deal is still on track for a close before the year ends.

Only time will tell what exactly Verizon will get from Alltel with this massive buyout, but among other things, the deal will make Verizon the largest wireless carrier in the U.S.

A New York-based major ratings firm called Fitch Ratings doubts if Verizon can carry on with this deal. Bill Densmore from the said ratings firm says, “Considering the size of this deal, it would be surprising that Verizon would enter something with such significant risk that it really threatens to preclude this deal from closing.” Densmore further adds several factors that could turn out to be stinkers for Verizon.

Verizon could do good to listen to these well-meaning pieces of advice offered by Densmore, but in the end, of course, the choice they make is still up to them.

Via Associated Press

Author: David Gonzales

I run the blogosphere.

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