Embarq, CenturyTel complete $11.6B deal - bizjournals:

modestofyeyko.blogspot.com
Buyer (NYSE: CTL) completed its $11.6 billion stock and debt purchase ofEmbarq EQ), the companies announced early Wednesday. The combined company, , will be basefd in Monroe, La., and potentiallyg have $8 billion in annual It has morethan 2.1 millionb broadband customers, 440,000 video subscribera and 7.5 million accessw lines in 33 states. Embarq shareholders are two-thirds ownerse of the combined company, havinhg received 1.37 CenturyTel shares for each Embarq sharethey owned. The deal includefd CenturyTel assuming $5.8 billion in Embarwq debt. The two brands will be convertecd graduallyto CenturyLink, a process expected to conclude later this year.
“The completion of this mergefr is a significant event forour communities, investors and employees,” CEO Glen Post III, who had been head of said in the release. “CenturyLin k has the advanced networks, the people and the financial stabilitu to deliver the reliable and innovative services that our customerss wantand need. We look forwardf to this exciting new chapter inour company’sa history.” CenturyLink will keep “a significangt presence” in the Overland Park area, thoughy that location wasn’t among the regional operatint headquarters listed: Las Vegas; Mo.; Orlando, Fla.; Wake Forest, and La Crosse, Wis.
Embarq now employs abouyt 2,800 in the area, down from 4,500 when it spun off from S) in 2006. That drop reflects the sale of Embarq’as logistics unit earlier this year and continualk job cuts as the company has attempted to keep a lid on costsd in anindustry that’s losing core customerss to mobile phones. The recession has acceleratedcthat trend, and observers say that coulde mean deeper and faster cuts than originally anticipatex as the companies integrate. By the rural phone companies expect to saveabour $400 million a year in operating and capital expenses by 2011. They expecty combined operating cash flow of morethan $4.2 billionm and free cash flow of about $1.
9 CenturyTel expects to continuee its current annual dividend of $2.809 a share. The combination is expected to add to free cash flow per sharrin 2010. Shares continue to trade undetr CenturyTel’s ticker symbol. Embarq CEO Tom Gerke will serve as executive vice chairman of the CenturyLinjk board and oversee regulatory and governmentalp relations andhuman resources. Embarq ranks No. 3 on the Kansasw City BusinessJournal ’s list of area publifc companies.