US mobile firm bought for $27.5bn

Alltel has the largest geographic reach in the US

US mobile phone network Alltel has agreed to be bought by TPG Capital and Goldman Sachs for $27.5bn (£14bn).

In what will become one of the largest ever private equity takeovers, TPG and Goldman Sachs are paying $71.50 per Alltel share.

This is a 10% premium over Alltel's Friday closing price of $65.21.

Based in Little Rock, Arkansas, Alltel's mobile phone network covers a total 35 US states - the largest geographic reach in the country.

'Substantial value'

Takeover interest in Alltel first hit the headlines last year, before increasing in February when the firm said it was reviewing its strategic options.

Alltel's board of directors has unanimously approved the deal, which is due to be completed by the end of this year, or start of 2008.

Scott Ford, Alltel's chief executive officer, who will remain in his current role, said the transaction "delivers substantial and certain value to our shareholders".

The news comes a week after carmaker Chrysler, contact lens company Bausch & Lomb and credit card processor Alliance Data all agreed to be bought by private equity firms.