Verizon to divest wireline operations

14 May 2009

US-based Verizon Communications has agreed to sell local wireline operations across 14 states to Frontier Communications in a deal worth USD8.6 billion. Under the terms of the deal, which is subject to shareholder and regulatory approval, Frontier will pay USD5.3 billion in common stock for the operations, which served 4.8 million customers at year-end 2008. Verizon will also receive an additional USD3.3 billion in cash and debt securities through the transaction. Ivan Seidenberg, chairman and chief executive officer of Verizon, said, ‘We expect that this transaction will benefit customers, employees and shareholders. Customers can count on continued high levels of service and innovation from Frontier, which will bring its laser focus on the needs of rural customers to these operations.’ Maggie Wilderotter, Frontier’s CEO, said, ‘This is a truly transformational transaction for Frontier. With more than seven million access lines in 27 states, we will be the largest provider of voice, broadband and video services focused on rural to smaller city markets in the United States.’