UPDATE 2-Windstream to buy D&E Communications for $330 mln

lunedì 11 maggio 2009 20:16
 

* Deal valued at about $330 mln

* Windstream to assume net debt of about $171 mln

* Sees deal adding to free cash flow in first full year

* D&E Communications shares surge 52 pct (Adds details, analyst comments, updates share movement)

By Bijoy Anandoth Koyitty

BANGALORE, May 11 (Reuters) - U.S. local telephone company Windstream Corp WIN.N agreed to acquire D&E Communications Inc DECC.O for about $330 million, a deal that will nearly double its operating presence in Pennsylvania.

As part of the deal, D&E Communications shareholders will receive 0.650 shares of Windstream stock and $5 in cash for each share held, Windstream said in a statement.

Windstream, which will also assume estimated net debt of about $171 million, said it plans to finance the deal with existing cash and current capacity on its revolving credit agreement.

Based on Windstream stock's Friday closing price, the deal values D&E Communications at $10.88 per share, a premium of about 61 percent to its Friday closing of $6.75, D&E Communications said in a separate statement.   Continua...