Qwest-CenturyLink deal gets antitrust OK

 

The Denver Business Journal

By Greg Avery

July 16, 2010

 

Federal anti-trust regulators have approved the acquisition of Qwest by CenturyLink, the Federal Trade Commission announced Friday, meaning regulators don’t consider the $10.6 billion deal anti-competitive.

The clearance is just one of many layers of approval the deal merging Denver-based Qwest Communications International Inc. (NYSE: Q) and Monroe, La.-based CenturyLink (NASDAQ: CTL) needs.

CenturyLink — formerly known as CenturyTel — announced plans April 22 to buy Qwest in a $10.6 billion stock swap. It will also assume about $12 billion in Qwest debt, giving the deal an overall value of $22 billion.

The merger is expected to close in the first half of 2011, subject to shareholder and regulatory approval.

If completed, the merger will create a telecom serving 37 states with about 5 million broadband customers and 17 million phone lines. 

The new company would be based in Louisiana.

Earlier this week, Qwest set Aug. 24 as the date for its special meeting of shareholders to vote on the CenturyLink deal. The shareholder meeting will be held at the Denver Marriott City Center starting at 10 a.m. MDT.

 

Compiled by the DBJ's Greg Avery