NEW YORK: US investment funds Texas Pacific Group and Goldman Sachs have reached agreement to buy Alltel, the owner and operator of the nation's largest wireless network, the three companies announced late Sunday.

Under the terms of the merger agreement, Texas Pacific and Goldman Sachs Capital Partners will acquire all of the outstanding common stock of Alltel for US$71.50 per share in cash.

The purchase price per share represents a 23 per cent premium over Alltel's closing share price prior to media reports of a potential transaction published last December.

Alltel's board of directors has unanimously approved the merger agreement and has recommended the approval of the transaction by Alltel's shareholders.

Completion of the transaction, which is currently expected to occur by the fourth quarter of this year or by the first quarter of 2008, is contingent upon approval by Alltel's shareholders and approval by regulators.

Scott Ford, Alltel's chief executive officer, will remain in his current role.

"This transaction delivers substantial and certain value to our shareholders while providing the company with long-term partners who share our commitment to our customers, employees and the communities we serve," Ford said in a statement.

- AFP/yy