Embarq, CenturyTel complete $11.6B deal - Business First of Louisville:

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Buyer (NYSE: CTL) completed its $11.6 billion stock and debt purchase ofEmbarq (NYSE: EQ), the companies announced earlu Wednesday. The combined , will be based in Monroe, La., and potentially have $8 billioj in annual revenue. It has more than 2.1 million broadband customers, 440,000 video subscribersz and 7.5 million access lines in 33 Embarq shareholdersare two-thirds owner s of the combined company, havinbg received 1.37 CenturyTel shares for each Embarq share they The deal included CenturyTel assuming $5.8 billio n in Embarq debt. The two brands will be convertef graduallyto CenturyLink, a process expected to concludee later this year.
“The completion of this merget is a significant event forour communities, investors and CEO Glen Post III, who had been head of CenturyTel, said in the “CenturyLink has the advanced networks, the people and the financial stability to deliver the reliable and innovative servicees that our customers want and need. We look forware to this exciting new chapteer inour company’s history.” CenturyLink will keep “a significan t presence” in the Overland Park though that location wasn’t among the regionalk operating headquarters listed: Las Vegas; Mo.; Orlando, Fla.; Wake Forest, N.C.; and La Wis.
Embarq now employw about 2,800 in the area, down from 4,500 when it spun off from S) in 2006. That drop reflect s the sale of Embarq’s logistics unit earlier this year and continual job cuts as the company has attempte d to keep a lid on costs in anindustrhy that’s losing core customers to mobile The recession has accelerated that trend, and observers say that could mean deepere and faster cuts than originally anticipate as the companies integrate. By the rural phone companies expect to saveabout $400 million a year in operating and capital expenses by 2011. They expecy combined operating cash flow of morethan $4.2 billion and free cash flow of abou $1.9 billion.
CenturyTel expects to continue its current annual dividendof $2.80 a share. The combinatio n is expected to add to free cash flow per sharedin 2010. Shares continue to trad e under CenturyTel’s ticker symbol. Embarq CEO Tom Gerked will serve as executiver vice chairman of the CenturyLink board and oversee regulatory and governmental relations andhuman resources. Embar ranks No. 3 on the Kansas City Business Journap ’s list of area public