Cellphone carrier Alltel has attracted a party of suitors with its solid growth and healthy balance sheet.
Alltel's private-equity suitors were probably also attracted by the firm's efforts to streamline itself.
If Alltel wants to grow, the government is planning to auction off more wireless spectrum licenses later this year.
Alltel's larger rivals have an edge because of their ability to secure content deals with large media providers.
Alltel also said in a statement that Ford would remain in his role.
Alltel's board is recommending the deal to shareholders, who will vote at a date that is yet to be announced.
Alltel has a rural presence spanning six states: Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina.
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Another challenge for Alltel is a possible reduction in revenue it gets when users of other networks roam into its area.
But Alltel could face significant challenges growing its business long term.
Wayne Weaver and his wife, Delores, are sitting in the richly carpeted owners' suite in Jacksonville, Florida's Alltel Stadium, watching the Jaguars play the Cincinnati Bengals.
Two other private equity teams, including Blackstone and Providence, and the Carlyle Group and Kohlberg Kravis Roberts, had also reportedly been in the running for Alltel.
The Alltel deal will bring in spectrum in the 700-, 850- and 1900-megahertz bands in rural areas in Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina.
's Alltel Stadium, watching the Jaguars play the Cincinnati Bengals.
Coming in a close second was Verizon with their Inpulse service, scoring 736, followed by T-Mobile, Boost Mobile, and TracFone, while Cingular's GoFone and Alltel both scored under the average of 717.
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Alltel reported a record-high net gain of 230, 000 new subscribers and said its churn rate--an industry metric that measures the percentage of customers that leave the company each month--was a record low 1.77%.
Industry watchers say Verizon has a clinch on the C block while another carrier, perhaps Alltel (nyse: AT - news - people ), likely has won one or two licenses.
Alltel also reported a record gain of 230, 000 new subscribers in the last quarter, and a record low churn rate, which measures the proportion of customers leaving the company each month, of 1.8%.
In another version of the story, niche carrier Alltel (nyse: AT - news - people ) buys Qwest, thrusting it into the big leagues and a giving the company a solid grip over communications in much of the rural areas of the country.
In this sort of scheme, Qwest could sell its long-distance business to BellSouth (nyse: BLS - news - people ), helping that company compete with the other major U.S. carriers, and then sell its regional coverage to local carrier Alltel (nyse: AT - news - people ), helping it jump into the big leagues.
Analysts have been expecting a takeover of Alltel for several months, and while a strategic buyer like Verizon (nyse: VZ - news - people ) may well have been able to achieve more cost savings than private equity buyers, rival suitors may have been put off by the fact that months of bid speculation had lifted Alltel's share price well out of reach.
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