If Verizon (VZ), as rumoured, purchases rival wireless carrier Alltel, it would make Verizon Wireless the biggest US wireless carrier, with approximately 80 million subscribers. Bank of America likes the sound of that.
BOFA sees VZ growing market share in the wireless space as nothing but good news. The bank sees potential synergies of at least $800 million and reiterates its BUY.
Market share is good, but the best news about this deal is that it’s a fire-sale. A private equity consortium bought Alltel last year for $27.5 billion, and Verizon is apparently going to get it for $27 billion. The private equity group may have overpaid, but, for once, corporate America (and its public market shareholders) aren’t playing an even greater fool. Private bondholders may even take a loss.
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