CenturyTel to Buy Embarq For More than $5 Billion in Stock

If you know the history behind these two formerly Independent telcos and how they became what they are today (including a new formula-ized name for one of them), this is interesting news.

From the Wall Street Journal Technical section today this comment:

"It also marks another step in the consolidation of America's traditional phone operators. Such companies are under consistent threat from wireless and cable-television operators. That has made efficiency all the more important for CenturyTel and Embarq, which run phone operations in 25 states and 18 states, respectively."

FierceTelecom's article stated:

The deal will involve Embarq shareholders receiving 1.37 shares of Centurytel stock for each share of Embarq stock they own, resulting in a combined entity in which Embarq shareholders "are expected to own approximately 66 percent and CenturyTel shareholders are expected to own approximately 34 percent," a press release said. The deal price represents 36 percent value of Embarq's Friday closing stock price.

Glen F. Post III, CenturyTel's Chairman and Chief Executive Officer, said in the press release that joining the two companies will accelerate the strategic plans of both. Telco consolidation at the independent level has been expected for many months, though the credit crisis and macro-economics conditions were seen as freezing progress toward such deals."

In a FierceTelecom article Dan O'Shea goes on to write:

CenturyTel's bid to acquire Embarq is surprising on at least a few levels."..."This is an intriguing deal, and more details--as well as more questions--are sure to emerge in the days ahead. "

Yes indeed...the industry landscape and the names change but the direction remains largely the same.

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