Alltel shareholders approve buyout

Alltel shareholders on Wednesday overwhelming approved the private equity buyout of the country’s fifth-largest wireless operator, leaving only FCC approval as the final hurdle for Alltel to go private.

Alltel said 97% of the votes cast were in favor of the $24.7 billion deal with GS Capital Partners, the private equity arm of Goldman Sachs, and TGP Capital. If the FCC gives the final okay, shareholders will receive $71.50 for every share outstanding. Alltel expects a favorable FCC response, closing the deal by year’s end, CEO Scott Ford said in a statement issued after the meeting.

Alltel certainly isn’t the largest company to leave the public exchanges due to the recent spate of private equity deals, but it is the first major operator in the U.S. to do so. Alltel has 12 million customers in 35 states, making it by far the largest of the Tier 2 carriers. Primarily a CDMA provider, there had been numerous rumors Verizon Wireless was targeting it for acquisition before the GS/TGP deal came to light.

The private investors’ plans for Alltel are still unclear. As a private company, Alltel can launch major capital improvement projects without being subjected to scrutiny from public shareholders. GS and TGP also could seek to acquire other regional CDMA carriers and combine them with Alltel, or the partnership could seek to overhaul the company operationally. Regardless of the track they pursue, the partnership will likely try to make the operator a much more financially attractive and stronger company before putting it back on the market.