Embarq: Sale would improve its market position

A key factor in Embarq Corp.'s decision to sell itself to CenturyTel Inc. was its desire to better position itself in a consolidating, shrinking local phone industry. In a Friday filing with the Securities and Exchange Commission, Embarq provided additional details about its decision to combine with CenturyTel in an $11.6 billion all-stock deal that includes assumption of about $5.8 billion in Embarq debt. Embarq released the information to help settle a shareholder lawsuit alleging that Embarq directors had not accepted the best offer for the company .Among their peers, only Embarq and CenturyTel were investment-grade companies, so "a combination with CenturyTel would result in a combined company with a stronger balance sheet better positioned to participate in further industry consolidation and other strategic opportunities," the filing said.