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FairPoint stockholders OK acquisition of some Verizon landline operations
By Lisa Kerner
Charlotte, N.C., Aug. 22 - FairPoint Communications, Inc. stockholders agreed to acquire Verizon Communications Inc.'s landline operations in Maine, Vermont and New Hampshire at a special meeting on Aug. 22.
Stockholders also re-elected David L. Hauser to a second three-year term on the company's board of directors and ratified KPMG LLP as FairPoint's independent registered public accounting firm for the fiscal year ending Dec. 31.
"We believe the acquisition of Verizon's northern New England landline operations will create shareholder value as well as provide a catalyst for future growth," FairPoint chairman and chief executive officer Gene Johnson said in a company news release.
"We look forward to successfully integrating Verizon's operations, leveraging the strength of our management team."
Under the Jan. 16 agreement, FairPoint will issue about 53.8 million of its common shares to be distributed in a tax-free Reverse Morris Trust transaction to the shareholders of Verizon as well as assume roughly $1.7 billion of debt. The transaction will give FairPoint's shareholders 40% ownership and Verizon's shareholders 60% ownership of the combined company.
It was previously reported that three existing directors from FairPoint will maintain their positions on the combined company's board of directors. Verizon will nominate six independent directors to the new board.
Verizon Communications, based in New York, delivers broadband and other wireline and wireless communication solutions.
Charlotte, N.C.-based FairPoint is a provider of communications services to rural communities.
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