Source: Fairpoint Press Release

FairPoint Communications (NYSE:FRP) has issued a statement regarding the Vermont Public Service Board’s (the Board) order denying approval of the transaction between FairPoint and Verizon (NYSE:VZ), but inviting the parties to submit a revised proposal to address the Board’s concerns. Under the terms of the merger agreement with FairPoint and Verizon, FairPoint would acquire Verizon’s wireline operations in Vermont, Maine and New Hampshire. The transaction requires approval by the three states’ regulatory agencies and by the Federal Communications Commission.

In its decision, the Board stated that, notwithstanding its denial of FairPoint’s petition, it was open to FairPoint submitting revisions that addressed its concerns, particularly the adequacy of its financial resources. In addition to the concerns about financial resources, the Order also set out a number of conditions that FairPoint would have to meet to acquire the Verizon operations in Vermont. The Board also noted that it did not consider a recent stipulation agreement in Maine that had the effect of lowering the debt to be incurred to consummate the transaction.

 Commenting on the Board’s decision, Gene Johnson, FairPoint’s chairman and ceo, stated, “We will quickly and thoroughly review the Board’s order and will respond appropriately. We are committed to the businesses and residents of Vermont and look forward to offering additional broadband access, quality service and new jobs, all of which are critical to economic development in Vermont. We remain committed to closing this transaction in a timely manner and believe that consideration of the Maine stipulation agreement will assist the Vermont Board in reaching a favorable decision.”