AT&T Inc, the biggest U.S. phone company, said on Tuesday that it would sell its wireline operations in Connecticut to regional telephone operator Frontier Communications for $2 billion in cash, to help fund network upgrades.Frontier shares rose more than 8 percent after it said the deal would boost its dividend payout ratio, generate savings and improve its adjusted free cash flow.Since many people are disconnecting home phones in favor of wireless services, regional operators such as Frontier have had to look to acquisitions for growth. AT&T, which depends on wireless for growth, and has said it would look to sell non-strategic wireline assets.Citi analyst Michael Rollins said the addition of AT&T customers would help boost Frontier's valuation.
Frontier Communications Corporation (Frontier) is a communications company providing services primarily to rural areas and small and medium-sized towns and cities in the United States. Shares of FTR traded higher by 8.64% or $0.38/share to $4.78. In the past year, the shares have traded as low as $3.71 and as high as $5.02. On average, 8615240 shares of FTR exchange hands on a given day and today's volume is recorded at 50376504.
AT&T Inc. (AT&T) is a holding company and a provider of telecommunications services in the United States and worldwide. Shares of T fell by 0.88% or $-0.3/share to $33.85. In the past year, the shares have traded as low as $32.76 and as high as $39.00. On average, 23669700 shares of T exchange hands on a given day and today's volume is recorded at 22071996.
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