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Frontier closes $5.3B deal for Verizon phone lines(2)

Fri, 07/02/2010 - 8:05am
The Associated Press

STAMFORD, Conn. (AP) — Frontier Communications Corp. closed its $5.3 billion acquisition of phone lines in 14 states belonging to Verizon Communications Inc., the company said Thursday.

Frontier, a Stamford-based phone company that focuses on small towns and rural areas, is taking over 4 million Verizon phone lines in a deal that will triple its size.

The acquisition was announced just over a year ago. Frontier agreed to pay roughly $5.3 billion in stock and take on roughly $3.3 billion of debt.

With the spin-off, Verizon shareholders will get 0.24 shares of Frontier, worth about $1.75 at Thursday's price, for every Verizon share they owned on June 7. Together, Verizon's shareholders will own 68 percent of Frontier.

Shares of Frontier rose 20 cents, or 2.8 percent, to $7.31 in afternoon trading, while Verizon shares were up 8 cents at $28.19.

More Broadband Direct 7/02/10:

•  CED Blog: Update on Shaw's FTTH trials
•  Time Warner Cable dials up VoiceZone in Carolinas region
•  Liberty Media to spin off operations
•  Spanish MSO picks TiVo for set-top software
•  Obama touts latest round of broadband stimulus
•  Frontier closes $5.3B deal for Verizon phone lines
•  Report: North American residential services to hit $271 billion by 2014
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