Source: Frontier Press Release
Frontier Communications Corporation (NYSE:FTR) announce that its pending acquisition of Verizon Communications’ (NYSE:VZ) local wireline operations has received approval from the Public Utilities Commission of Nevada. The transaction, announced May 13, 2009, includes Verizon’s local exchange businesses in 14 states, including parts of California, and certain customer relationships for long distance services, broadband Internet access and broadband video.
This week, on October 27, 2009, Frontier’s stockholders voted overwhelmingly to approve the merger agreement and related proposals.
Frontier has also received approvals from the California Public Utilities Commission, the Public Service Commission of South Carolina, and 10 of the 41 FiOS video franchise communities the company will serve in Washington state and Oregon. On September 1, 2009, the transaction received early termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
In addition to the remaining local franchise approvals and the approvals of six other states, the Federal Communications Commission (FCC) must approve certain license transfers as well. The FCC review is in process.
"We are very pleased with obtaining these key approvals,” said Maggie Wilderotter, Chairman and CEO of Frontier Communications. "Upon receipt of the remaining approvals necessary for closing the transaction, Frontier will be ready to deliver terrific products and services to our new customers. The new Frontier will have a strong balance sheet enabling us to upgrade broadband in many of these communities and to deliver an excellent customer experience. Financially, the transaction will result in lower leverage, operating flexibility, and greater cash flow generation, all of which should enable Frontier to achieve an investment grade credit rating,” she added.
After the transaction, Frontier will have approximately 7 million access lines in 27 states, 8.6 million voice and broadband connections, and approximately 16,000 employees, based on data as of December 31, 2008. The transaction is still expected to close during the second quarter of 2010.