Friday, December 21, 2007

Vermont Public Service Board Denies FairPoint Communications’ Planned Purchase of Verizon Landline

The Vermont Public Service Board has denied Fairpoint Communications planned purchase of Verizon landlines in the state. The $2.7 billion deal also involves the purchase of Maine and New Hampshire land lines. If one state kills the deal it is dead for all three states.

Here's a piece from the Burlington Free Press:

The Board found that FairPoint had not demonstrated that it would be financially sound as it seeks to operate the newly-acquired territories in Vermont, Maine and New Hampshire — a service territory that has five times the number of access lines as FairPoint presently has. However, the Board also explained that except for the financial risks associated with the transaction, it could approve the merger, subject to a series of conditions.

The Board did say that it was open to FairPoint submitting revisions that addressed its financial concerns.

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