SEC filing: Embarq rejected higher buyout bid

CenturyTel and Embarq received Federal Trade Commission approval this week for the former's acquisition of the latter. But the bigger news coming to light in a Telephony story is that Embarq acknowledged in a filing with the Securities and Exchange Commission that it chose CenturyTel's all-stock bid of $40.42 per share over a slightly higher offer from another unnamed company.

Companies such as Frontier Communications and Windstream Communications were thought to be possible Embarq suitors before CenturyTel and Embarq announced their acquisition agreement late last month. Embarq noted the $400 million in annual synergies from teaming with CenturyTel, as well as the Monroe, La., telco's 700 Mhz spectrum assets as a few of the reasons it chose the lower offer.

Telephony also reports that at one point CenturyTel considered trying to buy Embarq in tandem with another company. Overall, this news illuminates just how involved the bidding process was for Embarq, and just how much potential rural consolidation discussion is happening behind closed doors these days.

For more:
- Telephony has this report [1]

Related articles
CenturyTel and Embarq announced their pairing late last month [2]
CenturyTel and Embarq also reported third quarter earnings last month [3]