FCC approves license transfers in FairPoint, Verizon merger

By Lisa Kerner

Charlotte, N.C., Jan. 9 - The Federal Communications Commission approved the assignment of authorizations and licenses in FairPoint Communications, Inc.'s proposed acquisition of Verizon Communications Inc.'s wireline operations in Maine, New Hampshire and Vermont.

"In providing the approval for the necessary license transfers related to this merger, the FCC has recognized this transaction is in the best interest of consumers and businesses," FairPoint chairman and chief executive officer Gene Johnson said in a company news release.

"As we continue to make progress toward closing this transaction, we look forward to serving our new customers in northern New England and offering enhanced communications products and services."

FairPoint and Verizon announced their merger agreement on Jan. 16, 2007.

Under the 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.

It was previously reported that the transaction will give FairPoint's shareholders 40% ownership and Verizon's shareholders 60% ownership of the combined company.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.