Illinois Company Asks Regulatory OK in FairPoint Merger
Dec 12, 2016 06:27 PM EST
Dec 12, 2016 06:27 PM EST
The Illinois-based company that's buying telephone and internet company FairPoint Communications is preparing to make its first regulatory filings.
A spokeswoman for Consolidated Communications says the company will submit documents with federal regulators in the days ahead and will file with regulators in 13 states by the end of December.
The merger calls for Consolidated Communications to buy North Carolina-based FairPoint in a stock deal worth $1.5 billion. Federal regulatory approval is required.
In northern New England, regulators stung by FairPoint's struggles after it took over Verizon's landlines will give the deal close scrutiny.
FairPoint bought the Verizon holdings in the region for $2.3 billion in 2007. It filed for bankruptcy 18 months later after losing customers because of operational problems.
Likewise, Fairpoint's share is under investigation. This investigation on behalf of investors of FairPoint Communications Inc(NASDAQ:FRP) in connection with the proposed takeover was announced and NASDAQ:FRP stockholders should contact the Shareholders Foundation.San Diego, CA -- (SBWIRE) -- 12/12/2016 -- The acquisition of FairPoint Communications Inc is under investigation over potential wrongdoing. The investigation was announced for investors, who currently hold NASDAQ:FRP shares, concerning whether the takeover of FairPoint Communications Inc by Consolidated Communications Holdings, Inc is unfair.
Investors who purchased shares of FairPoint Communications Inc(NASDAQ:FRP) and currently hold any of those NASDAQ:FRP shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The investigation by a law firm concerns whether certain directors of FairPoint Communications Inc breached their fiduciary duties owed to NASDAQ:FRP investors in connection with the proposed acquisition.
On December 05, 2016, Consolidated Communications Holdings, Inc.announced it has entered into an agreement to acquire FairPoint Communications Inc (NASDAQ:FRP) in an all-stock merger transaction valued at approximately $1.5 billion, including debt. Under the terms of the agreement, FairPoint Communications Inc (NASDAQ:FRP) shareholders will receive a fixed exchange ratio of 0.7300 shares of Consolidated Communications common stock for each share of FairPointcommon stock. Based on a closing price of $28.38 per NASDAQ:CNSL shares investors in NASDAQ:FRP shares will receive a value of approximately $20.71 per share.
However, the investigation concerns whether the offer is unfair to NASDAQ:FRP stockholders. More specifically, the investigation concerns whether the FairPoint Communications Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Shares of FairPoint Communications Inc (NASDAQ:FRP) closed on December 9, 2016 at $19.05 per share.
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