It appears that the Verizon Alltel merger is facing a few problems. According to the folks at Engadget mobile, Verizon Wireless has formally requested more time to divest the assets that it has acquired.
In order to complete the Verizon Alltel merger, Big Red is required to divest assets some of the assets that it has acquired in the union. The FCC has required that Verizon needs to divest a portion of the more than 90 markets covering some 2.2 million customers that it has acquired by purchasing the regional carrier.
Verizon filed a "Request for Extension of Management Period" which an additional 60 days to close the divestitures. The company and those interested in acquiring its assets needs to complete the process to close the Verizon Alltel merger.
If the FCC approves the "Request for Extension of Management Period", then the new deadline for the divestitures of the Verizon Alltel merger would be on July 8. The reasons for the delay in the Verizon Alltel merger divestitures are said to be the tough economic climate and other complexities.
The plans for the Verizon Alltel merger was first announced merger for $5.9 billion in equity on June, 2008. Verizon has became the largest wireless network with the aid of the merger. The Verizon Alltel merger gave birth to a network that covers 290 million people and serves more than 83.7 million total customers.
That's it for this update on the Verizon Alltel merger. It appears that the economic downturn has adverse effects for the wireless network and other aspects of the economy. Even a union as massive as the Verizon Alltel merger has been delayed buy the harsh economic atmosphere.
