Updated: The news is official: The two PE firms have confirmed its potential buyout of Alltel, in a transaction valued at about $27.5 billion, the biggest private money foray into telecom sector in U.S. TPG Capital and GSCP will acquire all of the outstanding common stock of Alltel for $71.50 per share in cash, a 23 percent premium over Alltel’s closing share price “prior to media reports of a potential transaction published on December 29, 2006”, the release says. Acquisition financing will be provided by Goldman Sachs, Citigroup, Barclays and RBS.

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The board has approved the transaction and recommended it be passed by the shareholders as well….transaction is expected to close in Q4 of this year. Scott Ford, Alltel’s chief executive officer, will remain in his current role.

So reports WSJ, citing sources: Texas Pacific Group and the private-equity arm of Goldman Sachs are final stages of negotiating a purchase of U.S. fifth biggest wireless operator Alltel for about $25 billion. The buyers are expected to pay about $71.50 per share for the Little Rock, Ark.-based company.