Alltel Corp.’s acquisition of Western Wireless Corp. is expected to be completed this week following a shareholder consideration election held late last week at Western Wireless Corp.’s final annual shareholders meeting. An Alltel spokesman noted that the shareholder election was the final step in the deal, and that it was expected to close Aug. 1.
Results from the vote showed that holders of nearly 93.9 million Western Wireless shares elected to receive 0.539272 shares of Alltel stock and $9.18 in cash; holders of nearly 2.8 million shares elected to receive $9.25 in cash and 0.535 Alltel common shares; and holders of 200,054 shares elected to receive $40 in cash for each share of Western Wireless stock held. Alltel added that holders of nearly 4.1 million Western Wireless shares did not make a selection and will receive $9.25 in cash and 0.535 Alltel shares.
In total, Alltel said it planned to issue 54.3 million shares of common stock and pay $933.4 million to Western Wireless shareholders following a consideration election. Alltel previously announced that 96.8 percent of Western Wireless shareholders had elected to receive Alltel common stock as consideration for their Western Wireless shares, 3 percent elected a mix of cash and stock, and 0.2 percent selected an all-cash consideration.
Western Wireless also reported that its international operation has entered into a definitive agreement to sell its Irish-based Meteor Mobile Communications Ltd. subsidiary to Irish fixed-line operator Eircom Group plc for $500 million.
The deal requires approval from Eircom’s shareholders and an Eircom share issuance pursuant to a rights offering from which the company will use proceeds to finance the acquisition. Western Wireless said it expects the deal to close in October.
Western Wireless said it was continuing to receive, review and negotiate proposals for the sale of other international assets, including its Austrian business tele.ring, which the carrier said it has received conditional and non-binding bids in the amount of more than $1.5 billion.
