FCC approves Embarq sale - Kansas City Business Journal:

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billion all-stock purchase of That marks the finalk approval needed for the dealto close; the rural phond companies said they expect the combination to take effect July 1. “We have committed to the FCC that we will remaim focused on infrastructure development and broadbaned deployment after completion ofthe merger,” Embarq CEO Tom Gerkw said in a Thursday release. “Oufr combined company is committed to investing in our communities and providintg ourcustomers high-quality, reliable communications and expanderd broadband services.
” The companies committed to offer retaio broadband Internet access to all of theirt retail single-line residential and single-line businessz access lines within three yeara of the transaction’s close, according to the FCC approval. All threes commissioners supportedthe deal, which was announced Oct. 27. Both shareholders approved the combinationon Jan. 27, and all necessary states approvals havebeen attained. The comprising shares and the assumptionof $5.8 billion in Embarq makes Embarq shareholders 66 percent owners in the combinedc company. CenturyTel is less than half the size of Overland Park-based Embarq (NYSE: EQ) and CenturyTel, baseds in Monroe, La.
, plan to take on the name CenturyLink and retainm the CenturyTel (NYSE: CTL) trading symbol. The headquarterd will be in Monroe. The companies expecg the deal to generate savingsx ofabout $400 million a year withim the first three years. Most objectionxs to the combination dealt with concerns that it woulrharm competition, but the companies offeres voluntary steps to handle the concerns. “Wer find that the applicants’ voluntary commitments address these potential and that, on balance, the proposede transaction will benefit the public interest,” the FCC said in its Together, the two companies will operate in 33 states and have abougt 7.
5 million access lines, more than 2 million broadband customerz and more than 400,00 0 video subscribers. They serve primarily rural areas. CenturyTe l CEO Glen Post III will run the combined Gerke will serve as executive vice chairmahn of the board and oversee regulatory and governmental relations andhumamn resources. Embarq ranks No. 3 on the Kansas City Busines sJournal ’s list of area public companies. It spun off from Overlanxd Park-based (NYSE: S) in May 2006.