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Verizon directory spin off

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8:57 pm on Jul 10, 2006 (gmt 0)

10+ Year Member



From a financial analyst:

"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.

6:09 pm on Jul 17, 2006 (gmt 0)

10+ Year Member



[bloomberg.com...]

Looks like a buy out is in the works. Bad news for management and employees alike.