CenturyLink Qwest Merger Approved
CenturyLink Qwest Merger Approved – Shareholders have voted to approve the $10 billion acquisition of Qwest Communications International by CenturyLink Inc., according to reports that were released today. CenturyLink, as it stands today, is the fifth largest local phone company in the United States. With the acquisition of Qwest, a company that has struggled with many consumers opting to only use their cellular phones instead of the traditional landline phone; they have acquired the third largest local phone company in the nation.
97 percent of the votes that were handed in by shareholders at the meetings that were held on Tuesday were in favor of the acquisition. Shareholders are hoping that CenturyLink will be able to breathe some life into the ailing company.
The deal stipulates that current Qwest shareholders will own a total of 49.5 percent of the merged company, while current CenturyLink shareholders will hold a 50.5 percent stake in the company. Under the deal, Qwest shareholders will receive 0.1664 shares in CenturyLink for each share that they currently own. That number is a 15% bump from the previous offering that was made when the acquisition was first announced back in April.
Both companies have seen their stock rise in the wake of the announcement, with Qwest gaining three cents per share to rise to $5.66, and CenturyLink shares rising 13 cents per share to rise to $36.04. It will be interesting to see how the acquisition changes the way that the company does business, and deals with the national switch from public landline phones to cellular devices and smart phones.