Arizona Corporation Commission Discusses Quest-CenturyLink Inc. Acquisition
Saturday, February 26th, 2011
According to the Phoenix Business Journal, the Arizona Corporation Commission (ACC) will confer over the anticipated Quest-CenturyLink merger next week. Last Friday, a federal judge approved the settlement of the class-action lawsuit from shareholders challenging this merger.
The proposed merger comes down to CenturyLink, the fifth biggest US phone company, acquiring Quest in a $22 billion merger. The dispute from shareholders came down to a question over what was fair compensation. More than a dozen lawsuits were filed from shareholders arguing that the proposed merger would not sufficiently compensate Quest shareholders. The lawsuits were consolidated into a single case presented to US District Judge Wile Daniel in Denver who approved a settlement; however, figures have yet to be released as to what the case was settled for.
The $22 billion acquisition is currently awaiting the approval from Arizona as well as Washington, Minnesota, and Oregon in order to complete the acquisition. The deal is quite complex, but essentially comes down to a stock and cash deal that would result in $70 million in broadband infrastructure development throughout the next five years.
Additionally, the deal requires agreements with the Arizona’s Residential Utility Consumer Office. Analysts also indicate that the negotiations might hit a wall over the final conditions that are developed out of this meeting. Additionally, the threats of government shutdown could hamper approval from the Federal Communications Commission (FCC).
The deal is anticipated to be closed by April 1, 2011, barring any further complications with the deal. This merger will have a significant impact on CenturyLink’s size and scope in the telecommunications industry.
Article by Andrew Timm
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: acc , centurylink , fcc , quest , telecommunications
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