US fixed line operator Windstream has reportedly entered into talks with wireline rival Earthlink regarding a potential takeover deal. According to Reuters, which cites people close to the talks, the proposed deal will see Windstream own ‘slightly more than half of the combined company’, and could be formally announced as early as this week. Although the two companies are in advanced talks, neither service provider has finalised a deal, and the talks could yet fall apart, the news agency noted.
The emergence of the proposed deal late last week capped off a flurry of M&A activity in the US fixed line sector, following CenturyLink’s USD34 billion agreement to acquire Level 3 Communications. The transaction is designed to substantially expand the former’s fibre footprint.