DOJ REQUIRES DIVESTITURES IN VERIZON’S ACQUISITION OF ALLTEL

On October 30, 2008, the Department of Justice (“DOJ”) required Verizon Communications Corp. (“Verizon”) to divest assets in 100 locations in 22 States for its acquisition of Alltel Corp. (“Alltel”) to proceed. The divestitures cover the States of Alabama, Arizona, California, Colorado, Georgia, Idaho, Illinois, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, South Carolina, South Dakota, and Virginia.
According to the complaint, the proposed merger would have had anticompetitive effects for consumers 94 Cellular Marketing Areas (“CMAs”) as defined by the FCC, where both mobile wireless telecommunications service providers were each other’s closest competitors. Furthermore, proposed settlement also includes two modifications to existing consent decrees.

Andre Barlow
(202) 589-1834
abarlow@dbmlawgroup.com