The private auction of Verizon Wireless’ divested Alltel assets has attracted private equity giants and carriers AT&T and U.S. Cellular, according to multiple reports.
New York-based Blackstone Group LP, the world’s largest buyout firm, has made an offer along with Carlyle Group, which submitted a joint bid with private equity firm KKR & Co.
AT&T and U.S. Cellular also made bids before the auction’s deadline last week, according to unnamed sources cited by Bloomberg. Verizon, AT&T, Carlyle and KKR declined to comment. Blackstone Group and U.S. Cellular did not respond to requests for comment by press time, but had earlier refused to speak on the matter.
It has been speculated that the auction could fetch up to $3.5 billion. The assets up for bid span more than 20 states, with coverage concentrated in Idaho, Montana, North Dakota and South Dakota. Alltel Wireless still uses the Alltel brand in the markets that are up for sale.
The divesture is the result of an FCC decision forcing Verizon to sell some assets after its January acquisition of Alltel, which made Verizon the nation’s largest carrier. The carrier spent $28 billion to acquire Alltel.