Blackstone In The Running For Verizon Wireless Assets
April 07 2009 - 2:58PM
Dow Jones News
Blackstone Group LP submitted a bid for the assets Verizon
Wireless plans to spin off as a result of its acquisition of Alltel
Corp. (AT), according to a source familiar with the deal.
Blackstone joins a group of bidders already in play. The assets
represent the $3 billion in wireless assets that Verizon Wireless
is mandated to sell to ease antitrust concerns.
In February, The Wall Street Journal reported that rival
AT&T Inc. (T) made a bid for the assets, while Carlyle Group
and Kohlberg Kravis & Roberts & Co. made a joint bid.
Some industry observers believe AT&T will end up the winner
since it's the most logical acquirer.
Verizon Wireless spokesman James Gerace declined to comment, as
did AT&T spokesman Michael Coe. A Carlyle spokesman also
declined to comment. Spokesmen for Blackstone and KKR weren't
immediately available for comment.
Verizon Wireless - jointly owned by Vodafone Group Plc (VOD) and
Verizon Communications Inc. (VZ) - became the nation's largest
wireless carrier with the $28 billion Alltel deal, which closed in
January.
Verizon Wireless added 12.9 million Alltel customers to its own
base of 72.1 million subscribers.
Verizon shares fell 2.4% to $31.80 in late trading Tuesday, and
Vodafone fell 3.1% to $18.18, while AT&T shares fell 2.3% to
$25.58.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020;
roger.cheng@dowjones.com