FCC approves Embarq sale - Silicon Valley / San Jose Business Journal:

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billion all-stock purchase of That marks the finap approval needed for the dealto close; the rura l phone companies said they expect the combinationh to take effect July 1. “We have committefd to the FCC that we will remain focuse d on infrastructure development and broadband deploymeng after completion of the Embarq CEO Tom Gerkse said in aThursday release. “Ou r combined company is committed to investing in our communities and providingf ourcustomers high-quality, reliablre communications and expanded broadband services.
” The companies committer to offer retail broadband Internet acces to all of their retail single-line residential and single-line business accesx lines within three years of the transaction’s close, accordinbg to the FCC approval. All threw commissioners supportedthe deal, which was announced Oct. 27. Both companies’ shareholderds approved the combinationon Jan. 27, and all necessaryg state approvals havebeen attained. The comprising shares and the assumptionof $5.8 billion in Embar debt, makes Embarq shareholdera 66 percent owners in the combined company. CenturyTepl is less than half the size of Overland Park-based Embarq (NYSE: EQ) and based in Monroe, La.
, plan to take on the name CenturyLinkk and retain the CenturyTep (NYSE: CTL) trading symbol. The headquarters will be in The companies expect the deal to generater savings ofabout $400 million a year within the firsty three years. Most objections to the combination dealt with concernz that it wouldharm competition, but the companies offeredd voluntary steps to handle the “We find that the applicants’ voluntary commitmentes address these potential harms, and that, on the proposed transaction will benefit the public interest,” the FCC said in its Together, the two companies will operate in 33 states and have abour 7.
5 million access lines, more than 2 milliohn broadband customers and more than 400,000 video subscribers. They serv e primarily rural areas. CenturyTel CEO Glen Post III will run thecombinedr company; Gerke will serve as executive vice chairman of the boar and oversee regulatory and governmental relationsw and human resources. Embarq ranks No. 3 on the Kansas City BusinesdsJournal ’s list of area publiv companies. It spun off from Overland Park-based (NYSE: S) in May 2006.