CenturyLink, a US broadband, voice and data provider, has confirmed its takeover of cableco Qwest Communications following the approval of both companies’ shareholders. CenturyLink will acquire Qwest in a tax-free, stock-for-stock…
CenturyLink, a US broadband, voice and data provider, has confirmed its takeover of cableco Qwest Communications following the approval of both companies’ shareholders. CenturyLink will acquire Qwest in a tax-free, stock-for-stock transaction.
“Shareholder approval is another significant milestone in the merger approval process,” said Glen Post, III, CEO and president of CenturyLink, “I want to thank the shareholders of both companies for their notable support of the CenturyLink and Qwest combination. This is a transformative transaction that enables CenturyLink to be well-positioned both nationally and locally as a leader in providing broadband and next-generation communications services in urban and rural America.”
The transaction is still subject to regulatory and shareholder approvals and is expected to close in H1 2011, due to it needing the approval of some three dozen state regulatory bodies and the FCC.
Barclays Capital, Evercore Partners, and JPMorgan acted as financial advisors and Wachtell, Lipton, Rosen & Katz and Jones Walker Waechter Poitevent Carrere & Denegre acted as legal advisors to CenturyLink.
Lazard, Deutsche Bank, and Morgan Stanley & Co and Perella Weinberg Partners acted as financial advisors to Qwest while Skadden, Arps, Slate, Meagher & Flom and Wilmer Cutler Pickering Hale & Dorr acted as legal advisors.
A recent filing with the US Securities and Exchange Commission reveals that the merger agreement includes a US$350m break-up clause, which would see either telco pay the other if it walks away from the deal.
