Connectivity Business News
  • NEWS
  • REPORTS
  • TRANSACTIONS
  • DATA
  • PODCAST
  • WEBINARS
    • Past Webinars
Saturday, May 10, 2025
Log In
No Result
View All Result
  • Satellites
  • Space Services
  • Investment & M&A
  • Government & Defense
  • Strategy & Markets
  • Launch Dashboard
Connectivity Business News
  • NEWS
  • REPORTS
  • TRANSACTIONS
  • DATA
  • PODCAST
  • WEBINARS
    • Past Webinars
No Result
View All Result
Connectivity Business News
No Result
View All Result

CenturyLink and Qwest announce merger

Connectivity BusinessbyConnectivity Business
April 22, 2010
in News
0
Share on FacebookShare on LinkedInShare by Email

US based telcos CenturyLink and Qwest have announced plans to merge their businesses, stating that their boards of directors have approved a definitive agreement by which CenturyLink will acquire Qwest in a tax-free, stock-for-stock…

US based telcos CenturyLink and Qwest have announced plans to merge their businesses, stating that their boards of directors have approved a definitive agreement by which CenturyLink will acquire Qwest in a tax-free, stock-for-stock transaction.

CenturyLink provides voice, broadband and video services to consumers and businesses in 33 states. Qwest has a national fibre-optic network, through which it offers internet, digital home phone and TV services.

Under the terms of the agreement, Qwest shareholders will receive 0.1664 CenturyLink shares for each share of Qwest common stock they own at closing.

Upon deal closure, CenturyLink shareholders are expected to own approximately 50.5% and Qwest shareholders approximately 49.5% of the combined company.

The telcos state that based on the closing stock price of CenturyLink on April 21 2010, the per share consideration to be received by Qwest shareholders would be equivalent to US$6.02 of CenturyLink stock, which represents a premium to Qwest shareholders of approximately 15% over Qwest’s closing stock price on April 21, reflecting an enterprise value for Qwest of approximately US$22.4bn, including the assumption of US$11.8bn of Qwest net debt outstanding as of December 31 2009.

CenturyLink CEO and president Glen F. Post III said of the deal: “We believe the combination of CenturyLink’s and Qwest’s employees, assets and service areas will provide us greater scale, scope and expertise and will provide significant benefits for shareholders, customers and our communities. This combination will enhance our ability to deploy innovative IP products and high-bandwidth services to business customers, expand broadband availability and speed to consumers, and offer superior, differentiated video products.”

The two US telcos state that they expect the transaction to be accretive to CenturyLink’s free cash flow per share, excluding integration costs, immediately following the close of the sale, and add that the transaction is expected to generate annual operating and capital synergies of approximately US$625m when fully recognised over a three to five year period, following the close of the transaction. They further add that this combination will result in a company whose enterprise business will be a significant contributor to its growth which along with its consumer business, will allow it to offer broadband products and services over its networks.

As of December 31 2009, CenturyLink and Qwest had a presence in and served 37 US states, with some five million broadband customers, 17 million access lines, 1, 415, 000 video subscribers and 850,000 wireless consumers.

The combined company’s senior management is expected to be comprised of executives from both telcos. It has already been announced that William A Owens will take over as chairman of the board, Glen F Post III will serve as CEO and president, R Stewart Ewing will be CFO, Karen A Puckett has been appointed COO and Christopher K Ancell will be the president of the business markets group. Following deal closure, the board of directors of CenturyLink will add four members from the current Qwest board, including Edward A Mueller, current Qwest chairman and CEO.

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 Federal Communications Commission.

Barclays Capital, Evercore Partners, and J.P. Morgan Securities acted as financial advisors and Wachtell, Lipton, Rosen & Katz and Jones Walker Waechter Poitevent Carrere & Denegre L.L.P. acted as legal advisors to CenturyLink.

Lazard, Deutsche Bank, and Morgan Stanley & Co. and Perella Weinberg Partners LP acted as financial advisors to Qwest while Skadden, Arps, Slate, Meagher & Flom LLP and Wilmer Cutler Pickering Hale & Dorr LLP acted as legal advisors.

Tags: JPMorgan Chase
Previous Post

ONO to list by early 2011

Next Post

FT executive to depart

Related Posts

News

A message from the publisher

January 3, 2025
industry
Strategy and Markets

3 connectivity industry takeaways of 2024

December 30, 2024
2024
Space Services

Top launch milestones of 2024

December 27, 2024
Next Post

FT executive to depart

The Dish Podcast

Satellites

wi-fi

SpaceX, Amazon in talks with British Airways owner on Wi-Fi deal

December 24, 2024
leo

Eutelsat, Amazon rev up LEO ambitions

December 17, 2024
industry

Space Force to spend more than $10B on GPS upgrades

December 9, 2024
  • About
  • Contact Us
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Follow Us

© 2025 Royal Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • NEWS
    • All News
    • Investments
    • Government and Legal
    • Satellites
    • Space Services
    • Strategy and Markets
    • Terrestrial Connectivity
  • REPORTS
  • TRANSACTIONS
  • DATA
  • THE DISH PODCAST
  • WEBINARS
    • Upcoming Webinar
    • Past Webinars
  • SUBSCRIBE
  • Log In / Account

© 2022 Royal Media

THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gat_gtag_UA_60801358_11 minuteSet by Google to distinguish users.
_gat_gtag_UA_97997734_21 minuteSet by Google to distinguish users.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Save & Accept
Powered by CookieYes Logo