CenturyTel & Embarq Merge: $5.76 billion stock bought
CenturyTel and Embarq has agreed to merge where CenturyTel the people who provide local phone and internet services agreed to buy Embarq who are the spinoff from Sprint Nextel for around about $5.76 billion in stock, excluding debt
This new deal was just announced, the deal is worth a staggering $12 billion altogether once the deal has been completed, CenturyTel’s offer of 1.37 shares for each Embarq share did represent a price of $40.42 per Embarq share, and this was based on Friday’s closing stock price. That basically means there is a premium of 36 percent over Embarq’s stock price at Friday’s close.
Embarq are the people behind Sprint Nextel the original landline services, this is good news because not so long a go back in June Alltel was bought by Verizon Communications for $28.1 billion.
Will this new deal be a good one in the long run for customers is a question many of you may ask, Embarq did report a 3.5 percent drop in its second-quarter revenue in July overall, so surely this new merger should be very good indeed.
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