CenturyTel to Acquire Qwest in All-Stock Deal (CTL, Q)

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CenturyLink ( CTL ) has agreed to acquire Qwest [[Q] in a tax-free, stock-for-stock transaction.

Under the terms of the agreement, Qwest shareholders will receive 0.1664 CenturyLink shares for each share of Qwest common stock they own at closing. Upon closing of the transaction, CenturyLink shareholders are expected to own approximately 50.5 percent and Qwest shareholders are expected to own approximately 49.5 percent of the combined company.

The combined company would have a presence in nearly 40 states, with 17 million phone connections, 1.4 million video customers and 850,000 wireless subscribers. It would also become one of the largest high-speed Internet suppliers in the nation.

Bottom Line
We stopped recommending shares of CTL back on Oct.9, 2008, when the stock was trading at $35.03. The company has a 8.01% dividend yield, based on last night's closing stock price of $36.20. The stock has technical support in the $32 price area. If the shares can firm up, we see overhead resistance around the $40 price level. We would remain on the sidelines for now.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks
More Headlines for: CTL , Q , QWEST


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