ALLTEL to merge with 360

ALLTEL Corp. and 360 Communications announced March 16 the two companies will merge in a $6 billion deal. The combined company will have its headquarters in Little Rock, Ark., where ALLTEL is now based.

"The merger of ALLTEL and 360 creates a new, formidable competitor ideally positioned as one of the leading growth companies in the communications industry," said Joe T. Ford, chairman and chief executive officer of ALLTEL, in a release.

Dennis E. Foster, 360's president and CEO, said the merger will provide important benefits in economy of scale and "operational synergy."

"For example, ALLTEL is completing construction on a 6,800-mile fiber-optic network connecting its service areas," Foster said. "That network provides a cost-effective backbone for delivering additional communications services."

By merging, the company's release said, its overlap of wireless and hard-lined areas will increase from 27 percent to 43 percent. A release said the new company would seek to expand its local-exchange services in targeted areas.

The merged company will have operations concentrated in the Southeast and Midwest. ALLTEL has about 3 million customers for its wireless, long-distance and Internet services while 360 has about 2.6 million customers for wireless, long-distance and paging services.

The two executives said their companies share a strategy to bundle communications services.

Foster said savings of more than $100 million are projected by the year 2000.

Together, a company release said, the combined company will have $4.5 billion in annual revenues and the aforementioned 5.6 million customers in 22 states. The company will employ 20,000 people.

"The combined company will have more than 3,000 points of distribution, including 250 retail stores, 450 kiosks and 2,500 sales personnel, in addition to a strong agent and dealer network," Foster said in a release.

In addition, together the company will have more than 700 retail outlets.

Shares of 360 will be exchanged for 0.74 shares of ALLTEL under terms of the deal. ALLTEL shares, traded on the New York Stock Exchange under the symbol AT, closed trading March 18 at $44. The transaction is to be accounted for as a pooling of interests.

INSET CAPTION:

The combined company will have $4.5 billion

in annual revenue and 5.6 million customers

in 22 states.