Forum Moderators: anallawalla & bakedjake
"Although the tax basis remains uncertain, general market consensus is that Verizon Directories would need to issue more than $6 billion in debt (the 25 percent threshold), still causing CDS to split," Taksler said in a report sent on Monday.
In light of the leverage the directories business is likely to have, market participants expect the entity would be rated in "junk" territory.
I think the people at Verizon directory are praying that they will be spun off. If they a bought, the new owner could easily lay off over 40% of the people and still have a functioning business. About 40% of the people are in Sales while some of their competitors have over 80% of the people in Sales. Typcial Telco fat that will be trimmed.
Looks like a buy out is in the works. Bad news for management and employees alike.
