Alltel Corp., US regional wireless carrier, has announced its plan to acquire Western Wireless Corp. for $6 billion in cash, stock and debt.

The combined company will have revenue of about $10 billion and a customer base of about 9.8 million subscribers. The merger will lead to the creation of the fifth largest national provider with operations in 33 states and 6% of the market. After Alltel and Western Wireless join their networks, they will be able to cover 25% of the US population. Alltel declared that the purchase will bring it 1.4 million new customers.

Alltel will issue 60 million new shares, pay $1 billion in cash, and assume $1.5 billion in debt from Western Wireless. Alltel expects the acquisition to be earnings accretive in 2006.

Western Wireless stock was up 1.9% to $37.22 on the NASDAQ, while Alltel shares lost 2% and ended at $54.88 on the NYSE.

Alltel is at the moment the largest US regional carrier, and the acquisition enhances the chances of the deals between Alltel and other smaller companies.

"There’s been speculation about every possible permutation," said Scott Ford, Alltel’s chief executive. "We would like to continue to grow the wireless business through acquisitions as long as it is on terms that make sense."

Among possible target companies for Alltel’s growth are Rural Cellular and Centennial Communications whose stock was up since Alltel started its pursuit of Western Wireless.

"The wireless industry is gravitating swiftly to a smaller number of large national and regional players," said John Stanton, chief executive of Western Wireless. "The combination of Western Wireless with Alltel creates a rural operator using multiple technologies with the largest footprint in the country."

Alltel also has to decide the fate of its fixed-phone line giving it 40% of the revenue at the moment. Mr. Ford says he contemplates the sale of the unit in order to concentrate on the telecom services.