xsiddalx
join:2005-03-11
Chicago, IL
 ·AT&T Yahoo
| said by clickwir  :So they sold the territory on the condition that they own more than the majority of the company they just sold it to? Sounds like tax evasion more than selling of anything. Whoever still thinks phone service is a PUC is living a dream. Oh FCC, if you only did half your job. Read the release, it's simple enough (sorta). Wireline and some related lines of business spun off to "Company A".
"Company A" issues stock.
Stock is distributed to VZ shareholders.
We now get ownership in Fairpoint to the tune of 1 share for every 55 "Company A" shares.
Not sure how that will play out for me with only 100 vz shares (but not looking good).
VZ will own nothing, but its shareholders will after:
Company A swaps its shares with Fairpoint for Fairpoint shares, then Company A no longer exists.
That's the basics...
And yes..it is all about tax evasion. Same thing every home owner does to finance that MAC vehicle with a home owners loan, however, it the tax evasion is to the stockholders, not VZ.
The press release lays everything out clearly, the tax code does too. Depends on how much you want to read.
If the jobs actually stay in the NE, it is a win for the NE economy, and likely BB deployment. However, Fairpoint looks like a company built for sale (sorta like Vonage). Only time can tell for sure! |
