November 27, 2007
PUC staff opposes FairPoint-Verizon deal
The staff at the Maine Public Utilities Commission yesterday recommended the commission deny the sale of Verizon's landline business in Maine to FairPoint Communications.
The staff's recommendation came in the form of the PUC's Hearing Examiner's report, which can be viewed here. The report states that "taken as a whole, the proposed transaction subjects both ratepayers and shareholders to substantial risks and harms that are not outweighed by any of the potential benefits of the transaction." North Carolina-based FairPoint is seeking to acquire Verizon's 1.5 million landlines in Maine, Vermont and New Hampshire for $2.7 billion.
If the PUC's three commissioners choose to approve the merger, the PUC staff says conditions should be met, such as requiring FairPoint to submit a plan to deal with the expected loss of experienced workers and, if the commission does not adopt the Office of the Public Advocate's recommendation that Verizon decrease the sale price by $600 million, that Verizon set aside funds in an escrow account sufficient to cover the cost of completing necessary infrastructure upgrades.
Parties to the case may file responses to the report by Dec. 3. The PUC is expected to make a decision on the matter Dec. 13.
The staff's recommendation came in the form of the PUC's Hearing Examiner's report, which can be viewed here. The report states that "taken as a whole, the proposed transaction subjects both ratepayers and shareholders to substantial risks and harms that are not outweighed by any of the potential benefits of the transaction." North Carolina-based FairPoint is seeking to acquire Verizon's 1.5 million landlines in Maine, Vermont and New Hampshire for $2.7 billion.
If the PUC's three commissioners choose to approve the merger, the PUC staff says conditions should be met, such as requiring FairPoint to submit a plan to deal with the expected loss of experienced workers and, if the commission does not adopt the Office of the Public Advocate's recommendation that Verizon decrease the sale price by $600 million, that Verizon set aside funds in an escrow account sufficient to cover the cost of completing necessary infrastructure upgrades.
Parties to the case may file responses to the report by Dec. 3. The PUC is expected to make a decision on the matter Dec. 13.
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