Verizon and FairPoint Agree to Merge Verizon’s Wireline Businesses in Maine, New Hampshire and Vermont

Verizon and FairPoint Agree to Merge Verizon’s Wireline Businesses in Maine, New Hampshire and Vermont

Verizon Communications Inc. (NYSE: VZ) and FairPoint Communications, Inc. (NYSE: FRP) today announced definitive agreements that will result in Verizon establishing a separate entity for its local exchange and related business assets in Maine, New Hampshire and Vermont, spinning off that new entity to Verizon’s stockholders, and merging it with and into FairPoint.

FairPoint, based in Charlotte, N.C., is a telecommunications provider with 31 local exchange companies in 18 states, serving the unique needs of customers in rural and small urban markets. FairPoint provides an array of services, including local and long-distance voice, data, Internet and broadband. Verizon’s Maine, New Hampshire and Vermont properties serve approximately 1.5 million access lines, approximately 180,000 DSL customers and approximately 600,000 long-distance customers (as of Sept. 30, 2006).

“We believe this transaction will create an opportunity for further investment in Maine, New Hampshire and Vermont, strengthen the region’s economy by creating jobs and improve service to customers through capital investment,” said Gene Johnson, chairman and CEO of FairPoint. “At the same time, we have accelerated FairPoint’s growth through a single transaction, creating a much larger company with increased financial strength and flexibility that will continue to focus on maximizing value for investors.”

Read the complete Press Release