Alltel Reportedly Near Deal for Local Line Properties

Alltel(AT Quote - Cramer on AT - Stock Picks), the Arkansas-based telecom concern pushing aggressively into regional wireless, reportedly is near a deal to unload its local-line telephone assets for as much as $10 billion in stock.

A group comprising Citizens Communications(CZN Quote - Cramer on CZN - Stock Picks), CenturyTel(CTL Quote - Cramer on CTL - Stock Picks) and Valor Communications(VCG Quote - Cramer on VCG - Stock Picks) is in late-stage talks for the assets, the Financial Times said.

The local line assets serve about 3 million customers in the Midwest. Alltel's divestiture has been hinted at this year amid an expansion in which it acquired Western Wireless in January for $4.5 billion and Midwestern Wireless last week for $1.1 bllion.

Alltel's advisers at J.P. Morgan and Merrill Lynch are closing on a deal for the local-line assets, the FT reported, although no final decision has been reached.