July 25, 2005

Western Wireless reports that its international operation has entered into a definitive agreement to sell its Irish-based Meteor Mobile Communications subsidiary to Irish fixed-line operator Eircom Group for $500 million.

The deal requires approval from Eircom's shareholders and on 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 for more than $1.5 billion.

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Western Wireless also announced that its shareholders will vote at its July 29 annual meeting on the pending acquisition by Alltel Corp. If approved, the deal is expected to be completed that day with an effective date of closing scheduled for Aug. 1.

Alltel reported late last week that 96.8 percent of Western Wireless shareholders have 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.

Alltel had previously announced that each share of Western Wireless stock would be exchanged for .535 shares of Alltel common stock and $9.25 in cash. Western Wireless shareholders were provided with the ability to make an all-stock or all-cash election, subject to proration.

In aggregate, Alltel said it would issue about 60 million shares of stock, pay about $1 billion in cash and assume an estimated net debt of $1.5 billion as part of the acquisition.

Source: RCR News