CenturyTel (CTL) and Qwest (Q) Shareholders Approve Merger Agreement
CenturyTel, Inc. (NYSE: CTL) and Qwest Communications International Inc. (NYSE: Q) today announce that shareholders of both companies overwhelmingly approved all proposals related to the merger between CenturyLink and Qwest.
At a special meeting of CenturyLink's shareholders held today in Monroe, more than 97 percent of the votes cast supported the proposal to issue CenturyLink common stock to Qwest shareholders in connection with the proposed merger.
Approximately 97 percent of the votes cast – representing nearly 79 percent of Qwest's shares outstanding – voted to adopt the merger agreement at Qwest's special shareholder meeting held today in Denver.
"Shareholder approval is another significant milestone in the merger approval process," said Glen F. Post, III, chief executive officer and president of CenturyLink. "I want to thank the shareholders of both companies for their notable support of the CenturyLink and Qwest combination. This is a transformative transaction that enables CenturyLink to be well-positioned both nationally and locally as a leader in providing broadband and next-generation communications services in urban and rural America."
"Qwest shareholders' support of the merger with CenturyLink demonstrates the value of combining the two companies," said Edward A. Mueller, Qwest chairman and chief executive officer. "Together, we will be stronger both financially and operationally, which will benefit customers, shareholders and the communities in which we operate. Qwest shareholders will benefit from an increased dividend and will be able to participate in the upside potential of the combined company through ownership in CenturyLink stock."
In addition to approvals by CenturyLink and Qwest shareholders, the companies have received clearance from the U.S. Department of Justice and approval from seven state regulatory utility commissions.
Reviews continue in 14 other states and the District of Columbia and at the Federal Communications Commission. The companies expect to complete the merger in the first half of 2011.
Upon completion of the transaction, Qwest will become a wholly owned subsidiary of CenturyLink, and each share of Qwest stock will be converted into 0.1664 shares of CenturyLink common stock. CenturyLink plans to continue its current annual dividend of $2.90 per share, subject to Board approval. CenturyLink shareholders will own approximately 50.5 percent and Qwest shareholders will own about 49.5 percent of the combined company.
Upon close, the combined company will be headquartered in Monroe, and will maintain a key operational presence in Denver. Together, the companies employ approximately 49,000 people nationwide.
As of June 30, 2010, CenturyLink and Qwest served approximately 5.2 million broadband customers, 16.2 million access lines, 1.5 million video subscribers and nearly one million wireless customers in 37 states. The combination results in a robust, national 180,000 route mile fiber network, which enables delivery of a diverse mix of offerings and increased scale.
For more information about the merger, visit centurylinkqwestmerger.com.
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