Verizon announced plans to sell its local wireline business in California, Texas and Florida to Frontier Communications for $10.54 billion, Verizon said. It will also sell the leasing and operating rights to 11,324 wireless communication towers to American Tower for about $5 billion. The Boston-based American Tower will also purchase 165 additional towers outright from Verizon in the transaction.
Verizon's stock rose about 1 percent in after-hours trading following the announcement, while Frontier's shares rose almost 4 percent. American Tower's stock also rose slightly after the bell.
Verizon's deal with Frontier marks the second time in six years the two companies have done business together. Frontier bought 4.8 million rural phone lines from Verizon for $8.6 billion, according to a Reuters report. The New York City-based company also said it would buy back $5 billion in shares starting in this year's second quarter.
Source:
http://www.cnbc.com/id/102402418
