[R]10:45AM New York – Verizon Wireless agrees to acquire rural telecom company Alltel for $5.9 billion in cash offer and assume$22.2 billion in debt.[/R]

Verizon Wireless agreed to purchase Alltel Corporation for $5.9 billion in cash from private equity buyout groups TPG and GS Capital Partners of Goldman Sachs. The rural telecom company has 13 million subscribers in 57 rural markets where Verizon lacks a presence. Alltel potentially covers 31 million subscribers in 35 states where it is active.

Based on Alltel’s projected net debt at closing of $22.2 billion, the aggregate value of the transaction is $28.1 billion. Verizon communication has a majority stake in Verizon Wireless and Vodafone Group of the UK is the other large shareholder. The company estimated that the acquisition will be immediately accretive to excluding the transaction and integration costs.

“This is a perfect fit, with Alltel’s high-value post-paid customer base, its solid financials, our common network technology, and significant, readily attainable synergies,” said Ivan Seidenberg, Verizon chief executive officer and chairman.

Private equity buyout firms TPG and a fund controlled by Goldman Sachs agreed to pay $71.50 per share for Alltel on May 20, 2007. At the time of the deal it was reported that the funds had put equity of $4 billion and the rest of the deal valued at $24.17 billion was funded by a debt from a consortium of banks. The deal was at the time the largest telecom deal.

At the time of the deal, according to a proxy statement filed with the SEC, the wireless company was the fifth largest telecom company in the U.S. with 12 million subscribers.

Verizon Wireless (VZ: chart) rose $1.82 to $38.85.

Earnings review

ADC Telecommunications Inc, a global supplier of network infrastructure products said second quarter sales rose 16% to $403 million from $349.3 million a year ago. Net income in the quarter decreased 4.0% to $16.3 million or 14 cents per diluted share compared to net income of $92.1 million or 72 cents per share, a year ago.

ADC Telecommunications Inc stock (ADCT: chart) rose $1.15 to $16.80.

Amerco, Uhaul rental van operator said fourth quarter revenues declined 0.02% to $432 million from $441 million a year ago. Net loss in the quarter was $14.0 million or 85 cents per diluted share compared to net loss of $15.6 million or 89 cents per share, a year ago.

Amerco stock (UHAL: chart) added 52 cents to $59.03.

Collective Brands, Inc, the footwear retailer said first quarter revenues jumped 22% to $932.4 million from $728.6 million a year ago. Net income in the quarter decreased 49.35% to $19.7 million or 31 cents per diluted share compared to net income of $38.9 million or 59 cents per share, a year ago.

Collective Brands, Inc stock (PSS: chart) increased 57 cents to $11.84.

Comtech Telecommunications Corp, the communications equipment maker's said third quarter revenues grew 16% to $138.1 million from $119.9 million a year ago. Net income in the quarter edged up less than 1% to $19.3 million or 70 cents per diluted share compared to net income of $19.1 million or 71 cents per share, a year ago.

Comtech Telecommunications Corp stock (CMTL: chart) edged $1.93 higher to $47.80.

Dynamex Inc, delivery and logistics provider said third quarter revenues increased 9% to $113 million from $103.5 million a year ago. Net income in the quarter rose 8% to $3.8 million or 37 cents per diluted share compared to net income of $3.5 million or 32 cents per share, a year ago.

Dynamex Inc stock (DDMX: chart) added 45 cents to $25.52.

Financial Federal Corporation, Financial services company said third quarter revenues increased 8% to $29.1 million from $26.9 million a year ago. Net income in the quarter dipped 0.15% to $12.69 million or 52 cents per diluted share compared to net income of $12.71 million or 49 cents per share, a year ago.

Financial Federal Corporation stock (FIF: chart) increased 79 cents to $25.23.