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CenturyLink, Qwest shareholders OK takeover

Wed, 08/25/2010 - 8:15am
The Associated Press

MONROE, La. (AP) – Shareholders have approved the $10 billion takeover of Qwest Communications International by CenturyLink, the companies said Tuesday.

CenturyLink, the fifth-biggest local phone company in the U.S., is buying Qwest, the third-biggest, as both struggle with the decline of landline phone use in favor of cell phones.

Both companies said they won the support of 97 percent of votes cast by shareholders at meetings held Tuesday in Monroe, La., where CenturyLink is based, and Denver, where Qwest is based.

Under the deal, Qwest shareholders will own 49.5 percent of the new company, while CenturyLink shareholders will own 50.5 percent. Qwest shareholders will get 0.1664 CenturyLink shares for each share they own. That was a 15 percent premium over the last closing price of Qwest shares before the acquisition was announced in April.

Qwest shares rose 3 cents to $5.66 in afternoon trading, while CenturyLink shares rose 13 cents to $36.04.

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