Telecommunications company CenturyTel Inc. will acquire Kansas-based rival Embarq Corp. in a deal valued at $5.8 billion. The companies said today that Embarq shareholders will receive 1.37 shares of CenturyTel for each share of Embarq. Based on CenturyTel's Friday close of $29.50, that's equivalent to $40.42 of CenturyTel stock for each Embarq share owned.
CenturyTel will also assume $5.8 billion of Embarq's debt. When the acquisition closes, Embarq shareholders will own 66 percent of the combined company, and CenturyTel shareholders will own 34 percent.
Shares of Overland Park-based Embarq rose $1.75 per share to $31.49 by late this morning.