Alltel to spin off telephone division; Unit valued at $4.9B as company keeps focus on wireless business.(Business)

Byline: CHUCK BARTELS Associated Press

LITTLE ROCK, Ark. - Alltel Corp. said Friday a $4.9 billion deal to spin off its telephone division to shareholders will enable it to expand its core wireless business.

The new company will be combined with Valor Communications Group Inc. of Irving, Texas. The deal's total value will be $9.1 billion, including $4.2 billion in assumed Alltel debt, based on Valor's closing stock price from Thursday.

Alltel Chief Executive Scott Ford said the spinoff was the best move for shareholders and that the wireline division would no longer be subordinated to the dominant wireless business.

"Historically, the two …