For more information contact: For more information contact:
ALLTEL 360 Communications Company
Shawne S. Leach (501) 905-8991 Linda Wait (773) 399-2284
Vice President-Investor Relations Director-Investor Relations
George S. Smith (501) 905-8117 Sal Cinquegrani (773) 399-2783
Vice President-Media Services Vice President-Corporate Communications
Margaret Kirch Cohen (773) 399-2385
Director-Corporate Communications
Release date: March 16, 1998
ALLTEL, 360 WILL MERGE
IN MORE THAN $6 BILLION TRANSACTION
FOR IMMEDIATE RELEASE
NEW YORK - ALLTEL Corporation and 360 Communications Company today
announced they will merge in a transaction valued at more than $6 billion. The
combined companies will create a dominant, full-service communications provider
primarily located in the Southeast and Midwest and will be one of the largest
wireless carriers in the nation.
"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, ALLTEL chairman and chief executive officer.
"The companies share a unique vision of the communications industry and
what it will take to succeed in the future," he said. "The names of both
companies are synonymous with quality, convenience, innovation and value. Our
combination of people, products, networks, technology and geographic footprint
provides the perfect foundation for the communications company of the future."
"ALLTEL and 360 share a strategic objective to offer bundled
communications services throughout tightly focused geographic markets," Dennis
E. Foster, 360 president and chief executive officer, said. "This merger is a
natural extension of that strategy. Both
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ALLTEL and 360 to Merge
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companies have focused their efforts on developing strong distribution channels
and local presence in their operating areas.
"In addition, both companies primarily serve mid-size cities and
smaller communities. 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."
Ford said, "The geographic fit and complementary strategies of ALLTEL
and 360 will allow the combined company to realize significant competitive
benefits and operational synergy. By leveraging economies of scale in
purchasing, network operations, information technology and administration, the
new company expects to achieve annual cost savings in excess of $100 million by
the Year 2000."
"For example," Foster said, "ALLTEL is completing construction on a
6,800-mile fiber optic network connecting its service areas. That network
provides a cost-effective backbone for delivering additional communications
services, as well as carrying voice and data traffic and it will take only an
additional 1,800 miles to tie 360's contiguous markets into this network. When
the network is complete, transport costs will be reduced dramatically and the
traffic volume can increase substantially, with minimal additional investment."
Ford said, "With the convergence of information technology and
communications, ALLTEL's information technology businesses are an important
asset to the new company and will increase our competitive advantage in the
marketplace."
ALLTEL provides wireless, wireline, long-distance and Internet services
to 3 million customers in 14 states, and information services to financial and
communications companies in 47 countries.
360 provides wireless communications to 2.6 million customers in more
than 100 markets in 15 states. 360 also offers residential long-distance and
paging services.
From the standpoint of size, the merged company will have:
-- $4.5 billion in annual revenues;
-- $8.6 billion in assets;
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ALLTEL and 360 to Merge
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-- $12 billion in market capitalization;
-- More than 5.6 million communications customers in 22 states;
-- More than 1,100 information services clients in 47 countries;
-- More than 20,000 people employed worldwide;
-- An overlap of wireless and wireline properties that increases
from 27 to 43 percent, and has the potential to increase to
62 percent over time;
-- More than 50 million POPS (population);
-- More than 700 company-operated retail outlets;
-- More than 2,500 sales personnel;
-- Expanded opportunities to offer competitive local exchange service
in select geographically clustered markets.
Under terms of the agreement, each 360 share will be exchanged for .74
ALLTEL shares when the transaction is complete. The transaction will be
accounted for as a pooling of interests.
The merger is subject to approval by shareholders of both companies, as
well as regulatory and other approvals. Pending receipt of timely approvals, the
merger should be completed by mid-summer.
Following a transition period, the merged company will operate from
ALLTEL's headquarters in Little Rock, Ark., and will market its products under
the ALLTEL brand.
*ALLTEL, NYSE: AT
www.alltel.com
*360 Communications, NYSE: X0
www.360.com
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