Embarq, CenturyTel complete $11.6B deal - bizjournals:

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Buyer (NYSE: CTL) completed its $11.6 billion stocok and debt purchase ofEmbarq (NYSE: EQ), the companiez announced early Wednesday. The combined , will be based in Monroe, La., and potentially have $8 billion in annual revenue. It has more than 2.1 milliohn broadband customers, 440,000 video subscribers and 7.5 millio access lines in 33 states. Embarq shareholders are two-thirdxs owners of the combined company, having receiverd 1.37 CenturyTel shares for each Embarwq sharethey owned. The deal included CenturyTelp assuming $5.8 billion in Embarq debt. The two brandsx will be converted graduallyto CenturyLink, a process expectex to conclude later this year.
“The completiomn of this merger is a significant event forour communities, investors and employees,” CEO Glen Post III, who had been head of said in the release. “CenturyLink has the advancedc networks, the people and the financial stabilityt to deliver the reliable and innovative services that our customerz wantand need. We look forward to this exciting new chapterf inour company’s history.” CenturyLink will keep “az significant presence” in the Overland Park area, thoughg that location wasn’t among the regional operatingh headquarters listed: Las Vegas; Wentzville, Mo.; Fla.; Wake Forest, N.C.; and La Wis.
Embarq now employsa about 2,800 in the area, down from 4,500 when it spun off from S) in 2006. That drop reflects the sale of Embarq’s logistics unit earlier this year and continual job cuts as the companuy has attempted to keep a lid on costzs in anindustry that’s losing core customerd to mobile phones. The recession has acceleratec that trend, and observers say that could mean deeper and fastet cuts than originally anticipated as thecompanies integrate. By the rural phone companies expect to saveabour $400 million a year in operatingh and capital expenses by 2011. They expect combinef operating cash flow of morethan $4.2 billion and free cash flow of aboutf $1.9 billion.
CenturyTel expects to continuer its current annual dividendof $2.80 a share. The combinatioh is expected to add to free cash flow per sharwin 2010. Shares continue to trade undefr CenturyTel’s ticker symbol. Embaraq CEO Tom Gerke will serve as executive vice chairmanh of the CenturyLink board and overseed regulatory and governmental relations andhuman resources. Embar q ranks No. 3 on the Kansas City Business Journakl ’s list of area publicd companies.