Qwest and CenturyLink shareholders overwhelmingly approved the telecommunications companies’ proposed merger, according to preliminary results announced Tuesday.
With about 79 percent of Qwest shares outstanding represented, nearly 97 percent of votes cast were in favor of the deal. CenturyLink shareholder voting returned similar results.
In April, Monroe, La.-based CenturyLink agreed to acquire Denver- based Qwest for about $10 billion in stock and $12 billion in assumed debt.
Qwest chief executive Ed Mueller said earlier this month that he expects the merger to close in the first quarter of 2011. The Justice Department and regulators in seven states have approved the deal. It still requires clearance from the Federal Communications Commission and regulators in 14 other states, including Colorado, and Washington, D.C.
Mueller reiterated Tuesday at a special shareholders meeting in Denver that the merger will create a “stronger, more competitive company.” The company will be based in Monroe, employ 49,000 and serve 16 million land lines in 37 states.
Though approval was overwhelming, some Qwest shareholders and employees voiced concerns Tuesday.
A representative for the Communications Workers of America, which represents about 15,000 workers at Qwest, said the union couldn’t endorse the deal because too many questions remained. Specifically, the union is concerned about job security, broadband-deployment plans and CenturyLink’s ability to absorb Qwest while also integrating another recent acquisition, rural phone operator Embarq.
John Lyle, who has worked for Qwest for 33 years, said after Tuesday’s meeting that he voted against the deal because “the U S West-Qwest merger wasn’t a success.”
Qwest acquired U S West in June 2000 for $45 billion. The combined company nearly fell into bankruptcy in the summer of 2002 amid an accounting scandal and the tech bust.
Andy Vuong: 303-954-1209, avuong@denverpost.com or
