Could FairPoint be ready for a sale?

FairPoint Communications (Nasdaq: FRP) did not have a great second quarter, with a revenue loss and ongoing landline losses, though it did show some progress on the broadband front. Now, the occasional chatter about the possibility that the company--or at least part of it--could be acquired is being revived.

Maglan Capital recently visited FairPoint and came away with the impression the independent telco could be ripe to make a deal, according to a research note from David Tawil, co-founder and portfolio manager at Maglan Capital. Tawil listed Windstream Communications (Nasdaq: WIN), CenturyLink (NYSE: CTL) and Frontier Communications (NYSE: FTR) as potential buyers, with Windstream getting the nod as most likely to succeed. That list of potential buyers will not surprise too many people, as those three companies have been behind a good chunk of the telecom industry's rural market consolidation in recent years.

The Maglan note also said that FairPoint CEO Paul Sunu said his company's operational turnaround is ahead of schedule, and that Maglan believes that FairPoint management understands there is an opportunity to make a sale in order to pay down some bank debt.

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Broadband and backhaul offered positives for FairPoint in Q2