(Source - democratandchronicle.com) - If Windstream Corp.'s takeover of PAETEC Holding Corp. falls through, Perinton-based PAETEC could be obligated to pay as much as $40 million in termination fees.
The aquisition still needs approvals from the Federal Communications Commission (FCC) and a number of state utility regulators. It also requires approval of PAETEC shareholders. A date for that shareholder vote has not been set. The telecommunications company also could have to repay Windstream for up to $15 million in fees and expenses, though that payment would be credited against the breakup fee.
The Windstream takeover raises questions about PAETEC's plans for a headquarters in downtown Rochester. Tens of millions of dollars of public funds have already been spent in demolishing the Midtown complex and preparing the site. According to the merger agreement language, PAETEC is not legally bound "by any contract that imposes a requirement ... to maintain its headquarters in a specific location."
Windstream, formerly known as NuVox, delivers customized managed communications services, information technology, data, security, and a wide range of IP-based voice and advanced phone systems and equipment to businesses and government agencies. Windstream serves approximately 90,000 customers in 21 states throughout the Southeast and Midwest, and provides select services throughout the United States. Request a free price quote