honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser

Posted on: Tuesday, April 5, 2005

Extension granted for Carlyle, Verizon

By Deborah Adamson
Advertiser Staff Writer

The Carlyle Group and Verizon Hawaii have four more days to decide whether to appeal a ruling by the state that placed new restrictions on Carlyle's $1.65 billion offer to buy Verizon Hawaii, the state's main phone company.

The state Public Utilities Commission approved an extension to April 8 requested by Carlyle and Verizon to review the conditions, which include coming up with more cash for the purchase, no payout of dividends to investors until the debt level is lowered and no sale of Verizon's print directory business without state approval.

In March, the PUC approved — with conditions attached —Êthe purchase of Verizon Hawaii by the Carlyle Group, a Washington, D.C.-based private equity firm with $25 billion under management. The deal would give Verizon Hawaii's parent, Verizon Communications, more than $850 million while tripling the debt of the local carrier to $1.39 billion from $427 million.

Carlyle said its purchase of Verizon Hawaii would return management of the phone company to Hawai'i, add local jobs and boost customer service.

Analysts had said that the PUC restrictions could kill the deal. However, Nathan Hokama, a spokesman for Carlyle, said "both Verizon and Carlyle want the deal to go through. They just need more time to review the terms of the PUC order."

If the purchase goes forward, Hokama said, Carlyle would fold Verizon Hawaii into its telecommunications and media portfolio, one of its nine areas of expertise.

Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.