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vztechmancnh
join:2007-01-25
Manchester, NH
| So called sell off
Verizon will not keep the 60% of fairpoint stock. They are doing this as a spin off so they can shoe Northern States away tax free. If they did this as a sale, they would have to pay real estate transfer tax in NH and I'm sure something similar in VT and Maine. It's like selling your house by taking a 40% down payment and adding the buyer's name to your deed. When the buyer borrows the remaining 60% you just take your name off and deed and save thousands in taxes. The states lose all the real estate tax on every pole,office building, switching office, garage, etc....
This is where it gets interesting. Fairpoint has a market capitalization of about $675,000,000 (using sept 2006 outstanding share report and Tues stock price). In this deal they will take on $1,200,000,000 of VZ's debt and give VZ $1,000,000,000 in Fair point stock. So a company worth $.675 Billion is buying $2.7 billion worth of access lines????? Is this the new corporate math?
Verizon is selling out The consumers in three states, the State's governments and it's employees. If this "sale" goes through, Verizon is setting up Fairpoint for it's 3rd Bankruptcy. The 1st two were in 1998 and 2003. | |
shaftedbyVZ
join:2007-01-31
Farmington, NH | Hey man, I'm on your side but can you confirm that FP has been bankrupt? I haven't been able to find any documentation anywhere. | |
vztechmancnh
join:2007-01-25
Manchester, NH
| said by shaftedbyVZ  :Hey man, I'm on your side but can you confirm that FP has been bankrupt? I haven't been able to find any documentation anywhere. You've been around the block and are a skeptic like myself. I don't believe rumurs either until I can confirm them, which I did before writing letters to my state reps and senator.
Link to every filing they have made with the sec from 97 up to last week, spelling out the financing and the bonuses promised to the Fairpoint execs for the merger with Verizon and "Northern New England Spinco inc".I guess that's our new name on paper. Looks like they had to refinance for the measley $35 million owed to Verizon if the "merger" fails. How the heck can they afford 2.7 billion? It's very dry reading.
»www.secinfo.com/$/SEC/Registrant···cooliris
link to 2003 bankruptcy
»sec.edgar-online.com/2003/03/27/···on41.asp | |
splicerboy
@verizon.net
|  (their loss should = former Bell Atlantic/GTE territories gains in further upgrade/deployment which fills in more of the FIOS black holes... towns skipped over since 2003- 2006! Verizon's got much more to build in New York, New Jersey, Pennsylvania, Maryland, Dc, Texas, California, etc).....................................................................................................................
This is true. Except for the rural and poor growth areas. Remember Verizon doesn't have to sell the "whole" state as such. It could and it will sell off areas were they won't deploy Fios. The price of implementing a new fiber plant to replace the "old" copper in rural areas is not cost effective. Does anyone remember when they tried to sell upstate NY? They already sold Hawaii and now New England.
This is only the beginning. The best solution for customers in these "sketchy" areas would have been verizon building up it's infrastructure in the large growth areas and eventually update plant in low growth areas when they see profit from the new technology. Unless Verizon is selling their lines to another major player like ATT look for the reverse to happen. Verizon will make their "quick" buck and the customers will suffer. splicerboy has spoken. | |
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