Embarq, the nation’s fourth-largest phone company, is finding that the current market conditions are impacting its efforts to sell itself, according to The Wall Street Journal.

Embarq put up a “For Sale” sign a few weeks ago, but the credit crunch has made it difficult for potential suitors to raise the needed funds to finance a deal. A deadline for submissions recently passed, according to The Wall Street Journal.

Embarq, which is a spin-off of Sprint Nextel with a market cap of around $5.7 billion, hired JPMorgan Chase to help facilitate a sale. Windstream, the nation’s fifth-largest phone company, was interested in pursuing a deal with Embarq, and the two companies have reportedly engaged in preliminary discussions.

Embarq has six million customers in 18 states, while Windstream has 3.1 million subscribers.

More Broadband Direct:

• WiMAX World: In future, Clearwire will be competitor, partner with cable

• WiMAX World: WiMAX is now, forum says

• WiMAX World: Exhibitors strut their stuff

• Market conditions stall Embarq's sale

• Transverse supporting Spectrum Five's nationwide DBS launch

• Cox Business hooks up health facilities in Okla. with faster data speeds

• Study: 27% of mobile subs have replaced landlines with wireless service

• Broadband Briefs for 10/02/08