On April 22, CenturyTel Inc. (NYSE: CTL) announced the acquisition of Qwest Communications International Inc. (NYSE: Q) in a stock swap worth $10.6 billion.
The combined company would service 18 million phone lines in 37 states, but will still lag far behind industry leaders AT&T Inc. (NYSE: T) and Verizon Communication Inc. (NYSE: VZ).
Shareholders of Qwest would receive 0.1664 CenturyTel shares for each share that they own. Qwest stockholders would own 49.5 percent of the combined company, with CenturyTel stockholders controlling the rest.
The deal is expected to close in the first half of 2011, and the boards of both companies will have to approve the tax-free acquisition. The deal would save an estimated $625 million over the three to five years following the close.