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Wireless swap to clear deal
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February 1, 2000: 7:49 a.m. ET
Bell Atlantic, GTE, Alltel announce exchange of properties in 13 states
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NEW YORK (CNNfn) - Bell Atlantic Corp. and Alltel Corp. Tuesday announced a swap of wireless properties in 13 states -- a move meant to win regulatory approval for Bell Atlantic's proposed venture with Vodafone AirTouch Plc, which will create the biggest wireless network in the United States.
The deal also includes GTE Corp., which Bell Atlantic is acquiring. The value of the properties transferred was not released, but the Wall Street Journal estimated the deal is worth about $3 billion.
The companies said the swaps would eliminate all of the overlapping cellular operations that would be created by the combination of Bell Atlantic's and Vodafone AirTouch's wireless properties announced Sept. 21. The completion of that joint venture is imminent, to be closely followed by Bell Atlantic's acquisition of GTE.
Bell Atlantic and Vodafone reached a consent decree with the Department of Justice Dec. 6 to resolve overlaps through swaps or sales. All of the GTE or Bell Atlantic operations involved in the deal will go to Alltel, along with 700 Bell Atlantic and 1,000 GTE employees. About 900 Alltel employees will join the new Bell Atlantic/GTE/Vodafone joint venture.
Under the agreement announced Tuesday morning, Bell Atlantic (BEL: Research, Estimates) or GTE (GTE: Research, Estimates) will transfer control of service in 27 markets in Alabama, Arizona, Florida, Ohio, New Mexico, South Carolina and Texas. Those markets have 1.5 million wireless customers and a population of 14 million.
Alltel (AT: Research, Estimates) will transfer control in 42 markets in Illinois, Indiana, Iowa, Nevada, New York and Pennsylvania with a million customers and a combined population of 8.9 million people. Alltel will also pay $600 million to Bell Atlantic, GTE and Vodafone AirTouch (VOD: Research, Estimates).
Bell Atlantic stock rose 4-5/16 to 61-15/16, Monday, while GTE added 5-9/64 to 73-1/4. Alltel rose 2-3/4 to 66-3/4, while U.S. shares of Vodafone rose 1-3/8 to 56. 
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