CT Merges With Windstream

CT Communications announced a definitive agreement to merge with Windstream Corporation

May 29, 2007

2 Min Read

CONCORD, N.C. -- CT Communications, Inc.(CTC) (Nasdaq: CTCI) today announced a definitive agreement to merge withWindstream Corporation (NYSE: WIN). In a vote by its board of directors, CTCommunications has accepted an offer from Windstream to acquire all of theoutstanding shares of CT Communications for $31.50 per share in cash. Theoffer represents a 46% premium to the closing price of CT Communications'stock on May 25, 2007, and a 31% premium to the previous 30-day averagetrading price. Including the assumption of cash and debt, the transactionis valued at approximately $585 million. The merger is subject to approvalsfrom federal and state regulators, as well as CT Communications, Inc.shareholders.

CTC, headquartered in Concord, NC, is a growing provider of integratedtelecommunications and related services to residential and businesscustomers located primarily in North Carolina. CTC offers a comprehensivepackage of telecommunications services, including broadband high-speedInternet services, local and long-distance telephone services, and digitalwireless voice and data services. Recently, the company began a commercialtrial of a new video product that utilizes a fiber optic network, allowingsignificantly greater bandwidth delivery for the ever-growing applicationand service needs of customers. The network deployment began in 2006 andnow passes 11,000 homes in the Concord area.

Windstream Corporation provides voice, broadband and entertainmentservices to customers in 16 states. The company has approximately 3.2million access lines and about $3.2 billion in annual revenues. Thetransaction with CTC adds approximately 158,000 access lines and 29,000broadband customers, nearly doubling Windstream's presence in NorthCarolina. Originally founded in 1897 as The Concord Telephone Company, CTC wasthe first to bring telephone services to Cabarrus, Stanly and Rowancounties. CT Communications combines more than a century of experience withan expanding vision of how technology can connect people, businesses andcommunities.

"For 110 years, it has been our pledge to develop and deliverinnovative, diversified services that are competitive and dependable forour customers, and to provide our shareholders with attractive financialresults" said Mike Coltrane chairman, president and CEO of CTCommunications "Because of our strong operational and fiscal performanceover the last several years, we found ourselves in the unique and enviableposition of possessing significant cash reserves and very low debt. Assuch, we found ourselves willing to explore strategic options for ourcompany, and fully believe that this merger will provide the long-termvalue that our shareholders deserve."

CT Communications Inc. (Nasdaq: CTCI)

Windstream Communications Inc. (Nasdaq: WIN)

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