NEW YORK, May 13 (UPI) -- Verizon Communications Inc. said Wednesday it agreed to sell rural wireline operations in 14 states to Frontier Communications for $8.6 billion.
Verizon Chairman and Chief Executive Officer Ivan Seidenberg said in a statement that customers affected by the deal can rely on Frontier's "laser focus on the needs of rural customers."
The two companies would work to "ensure ... a smooth transition" for employees affected by the transaction, Seidenberg said.
Approximately 11,000 Verizon employees will switch to working for Frontier, Verizon said.
The transaction includes transfer of all of Verizon's wireline operations in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin. It also includes smaller operations in California that border on Arizona, Nevada and Oregon.
Verizon shareholders are to receive about $5.3 billion of Frontier stock, while the company receives about $3.3 billion in debt securities and cash.
