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Alltel May Sell Wireline Cashcow

Take this cashcow, please -- Alltel is in negotiations with as many as three U.S. telecommunications carriers to sell its wireline business for about $10 billion, according to a recent report.

The Little Rock, Arkansas-based carrier is in late-stage negotiations with Citizens Communications of Stamford, Connecticut; CenturyTel of Monroe, Louisiana; and Valor Communications of Irving, Texas, according to the Financial Times.

Shares of Alltel were up $1.13 to $67.13 in recent trading. Alltel announced back in September that it had begun a �strategic repositioning� of its local telephone business.

The carrier, which has been contemplating a wireless-only focus, currently serves more than 3 million local telephone customers, primarily in rural areas of 15 states. The company also serves about 2 million long-distance customers.

The sale of its traditional wireless business would mean that Alltel will become entirely focused on its very profitable wireless operation, which serves 10 million customers and has made the carrier the fifth-largest wireless service provider in the United States.

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