CenturyLink, a US broadband, voice and data provider, has negotiated another hurdle in its US$22.4bn quest to acquire Qwest Communications, with cableco Cox Communications withdrawing its objection to the proposed deal. Privately-owned Cox, the…
CenturyLink, a US broadband, voice and data provider, has negotiated another hurdle in its US$22.4bn quest to acquire Qwest Communications, with cableco Cox Communications withdrawing its objection to the proposed deal. Privately-owned Cox, the third-largest cable entertainment and broadband services provider in the US had argued that it was not in the public interest for CenturyLink to acquire Qwest’s business in Arizona and Nebraska.
However, following a wholesale service agreement drawn up between Cox and CenturyLink, the Atlanta-headquartered cableco withdrew its opposition.
“We are pleased that Cox will not oppose our merger and finds that it is in the public interest,” said Bill Cheek, president of Century Link wholesale operations. “Cox is a significant interconnecting network customer of Qwest, and we look forward to continuing an effective working relationship after the transaction is completed.
“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 nine more state regulatory bodies.
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.
