Alltel to pay to end Midwest Wireless probe

Alltel Corp., a wireless carrier that was taken private last month, agreed to pay the U.S. Justice Department and the state of Minnesota $1.33 million to end a probe into its purchase of Midwest Wireless Holdings.

Alltel will pay $745,000 to Minnesota and the remainder to the U.S. Treasury, the Justice Department said Monday in a statement.

Investigators were trying to find out whether Alltel failed to upgrade and maintain operations at units sold as part of its agreement to buy Mankato-based Midwest Wireless. The Justice Department also said Little Rock, Ark.-based Alltel provided misleading reports about improvements.

The units were sold to promote competition in Minnesota's wireless market.

Alltel spokesman Andrew Moreau said that the company admits no wrongdoing in entering the settlement and that the payment is "not material."

TPG Inc. and Goldman Sachs Group Inc. completed their $24.7 billion purchase of Alltel last month. The company is the fifth-largest U.S. wireless carrier behind AT&T Inc., Verizon Wireless, Sprint Nextel Corp. and T-Mobile USA Inc. It has about 12 million subscribers.