CenturyTel will buy its US telecommunications competitor Embarq for $5.8 billion (US dollars) in a stock-by-stock transaction resulting in Embarq shareholders owning around 66 percent of the merged company once the deal is finalised. This acquisition will create a company that will operate in 33 US States. The merged company will have revenue of more than $8.8 billion given the fact that Embarq revenue is more than twice that of CenturyTel’s so far in 2008.Century Tel posted third quarter 2008 results showing operating revenues that excluded non-recurring items at $650.1 million compared to the same time last year’s posting of $708.3 million. The decline primarily was due to prior lending revenue settlements of $42.2 million in the third quarter upon the termination of regulatory monitoring period.
The $16 million remaining decline reflects the impact of lower access revenue and access line losses revenues, although it more than offset revenue growth related to an increase In high-speed internet subscribers which increased by almost 20,600 new high-street internet customers during 3Q.
Source: Marketwatch
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