Will Frontier Communications run into the same woe that's befallen FairPoint Communications? The two companies have followed a nearly parallel course in acquiring rural operations from Verizon, paying with stock and promising cash down the line. While the corks are still popping at Frontier, the post-celebration hangover at Fairpoint--which is now saying it needs to restructure--should be fair warning.
For more:
- Check out this Wall Street Journal article [1]
Related articles
Frontier to buy Verizon rural landlines for $5.25B [2]
Fairpoint seeks delay in debt repayment
[3]Fairpoint reports Q4 loss, suspends dividend [4]
Links:
[1] http://online.wsj.com/article/BT-CO-20090513-718545.html
[2] http://www.fiercetelecom.com/story/frontier-buy-verizon-rural-lines-5-25-billion/2009-05-13
[3] http://www.fiercetelecom.com/story/fairpoint-seeks-delay-11m-debt-payment/2009-03-12
[4] http://www.fiercetelecom.com/story/fairpoint-reports-q4-loss-suspends-dividend/2009-03-05