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Paetec shareholders OK sale to Windstream
31 October 2011
Stockholders of Paetec Holding have approved of Windstream’s $2.3bn acquisition bid for Paetec
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Windstream
Paetec
merger
Alltel
Verizon Wireless
The shareholders of US business operator Paetec have approved a takeover by acquisitive operator Windstream, based in Arkansas.
However, Paetec CEO Arunas Chesonis gave a less than enthusiastic welcome, saying that the $2.3 billion merger will lead to job cuts in marketing and finance, among other functions. He added that the acquisition will lead to other job uncertainties as well. Chesonis said: “It's an anxious time. It's especially anxious in middle management.”
Windstream was hived off in 2006 from Alltel’s fixed operations. Verizon Wireless bought the mobile side of Alltel in 2008 for $28 billion.
Since then Windstream has acquired a number of other operators. Following completion of the Paetec merger, the firm’s stockholders will receive 0.46 shares of Windstream common stock for each share of Paetec common stock they own. The two firms look to complete the deal December 31. GTB