D&E Communications, Inc. Announces Shareholder Approval of Merger Agreement With Windstream Corporation
25 September 2009 - 2:45AM
Marketwired
D&E Communications, Inc. (NASDAQ: DECC) today announced that
its shareholders, at a special meeting held today, approved the
definitive agreement and plan of merger with Windstream Corporation
originally announced on May 11, 2009 and valued, as of that date,
at approximately $330 million.
Under the terms of the merger agreement, each share of common
stock, par value $0.16 per share, of D&E, issued and
outstanding immediately prior to the effective time of the merger,
will be converted into and become exchangeable for (i) 0.650 shares
of common stock of Windstream and (ii) $5.00 in cash.
D&E also announced that an agreement has been reached with
all intervening parties in the proceeding before the Pennsylvania
Public Utility Commission seeking approval of the merger. The
agreement will be submitted to the Administrative Law Judge
assigned to review the merger. The Judge will then submit his final
recommendation to the full Pennsylvania Public Utility Commission
for final consideration. In order to provide the parties with
sufficient time to obtain all of the regulatory approvals required
to close the transaction, the date by which the transaction is
required to be closed has been extended as permitted by the merger
agreement to December 9, 2009.
"With approval by our shareholders, I am pleased that we have
taken another step toward closing the Windstream transaction," said
James W. Morozzi, President and Chief Executive Officer of D&E
Communications. "We will continue to work toward satisfying the
other conditions to closing and working with Windstream on
integration plans. We anticipate that the transaction will close in
the fourth quarter," said Morozzi.
About D&E
D&E is an integrated communications provider offering
high-speed data, Internet access, local and long distance
telephone, data, professional IT services, network monitoring,
security solutions and video services. Based in Lancaster County,
D&E has been serving communities in central Pennsylvania for
more than 100 years. For more information, visit
www.decommunications.com.
About Windstream
Windstream Corporation is an S&P 500 company that provides
digital phone, high-speed Internet and high-definition video and
entertainment services to residential and business customers in 16
states. The company has approximately 3 million access lines and
about $3.2 billion in annual revenues. Windstream is ranked 4th in
the 2009 Business Week 50 ranking of the best performing U.S.
companies. For more information about Windstream, visit
www.windstream.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations and beliefs and are
subject to a number of factors and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. The forward-looking statements
contained in this document include statements concerning the
proposed transaction. These statements are not guarantees of future
performance, involve certain risks, uncertainties and assumptions
that are difficult to predict, and are based upon assumptions as to
future events that may not prove accurate. Therefore, actual
outcomes and results may differ materially from what is expressed
herein. For example, if D&E fails to satisfy the conditions to
closing, the transaction may not be consummated. The following
factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements:
risks associated with uncertainty as to whether the transaction
will be completed, costs and potential litigation associated with
the transaction, the failure of either party to meet the closing
conditions set forth in the merger agreement, the extent and timing
of regulatory approvals, changes in the extensive governmental
legislation and regulations governing telecommunications providers
and the provision of telecommunications services,
telecommunications carriers disputing and/or avoiding their
obligations to pay network access charges for use of D&E's
network, high costs of regulatory compliance, the competitive
impact of legislation and regulatory changes in the
telecommunications industry and the other risk factors discussed
from time to time by the Company in reports filed with the
Securities and Exchange Commission. We urge you to carefully
consider the risks which are described in D&E's Annual Report
on Form 10-K for the year ended December 31, 2008 and in D&E's
other SEC filings. D&E is under no obligation to (and expressly
disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events, or otherwise.
CONTACT: Thomas E. Morell Sr. Vice President, Chief Financial
Officer, Secretary and Treasurer (717)738-8315
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