Despite legal wrangles last month, US telco Frontier Communications has fully acquired all of Verizon’s rural phone lines. The US$8.6bn deal was in the balance when US administrative law judge, Lisa Tapia told regulators that she was against the sale….
Despite legal wrangles last month, US telco Frontier Communications has fully acquired all of Verizon’s rural phone lines. The US$8.6bn deal was in the balance when US administrative law judge, Lisa Tapia told regulators that she was against the sale. She argued that evidence of the case does not support a deal, due to the debt impact it would cause to Frontier. This, she argued, would have an impact on Frontier’s ability to manage lines and infrastructure.
However, all objections have been overturned and Frontier has taken on the local phone services of 14 mostly-rural US states. This makes Frontier the largest rural telecom carrier in the country. Frontier now provides services to 4m residential customers in 27 states.
Ivan Seidenberg, Chairman of the Board and CEO of Verizon said: “Frontier continually defines its success in terms of customer and employee satisfaction, and it’s obvious they care deeply about the communities they serve.”
Verizon shareholders received US$5.25bn of Frontier common stock and with the company itself receiving UN$3.33bn, primarily through a US$3.08bn special cash distribution. Verizon’s consolidated debt is also being reduced by US$250m, representing debt that was borrowed from third parties by former Verizon subsidiaries that became Frontier subsidiaries through the spinoff and merger.
