Alltel Corp

Alltel Corp., a provider of wireless, local and long-distance telephone services, said it will cut 1,000 jobs, or 3.7% of its work force, as part of a plan to reduce expenses. Alltel also forecast per-share profit from current businesses of $2.85 to $3 this year.

Alltel Corp. said Monday that it agreed to buy wireless service provider 360 Communications Co. for about $4.2 billion in stock, a move to create a regional niche player focused on mid-size markets. The combined company, with about $4.5 billion in annual sales and 20,000 employees, would be a force in the Southeast and Midwest and a leader in the smaller markets often overlooked by larger telecommunications companies, analysts said.

Alltel Corp. is in talks to buy 360 Communications Co. for more than $40 a share in stock, or about $4.87 billion, to expand its wireless phone business in the Southeast, sources familiar with the negotiations said. The companies expect to unveil an agreement Monday, the sources said. Both companies declined to comment. With 360, Alltel would more than triple its wireless subscribers to about 3.6 million, making it a stronger competitor in BellSouth Corp.'s fast-growing Southern region.