Late next month, shareholders of PAETEC Holding Corp. will vote whether to approve the pending, $2.3 billion takeover by Windstream Corp.
The vote is scheduled for Oct. 27, Windstream disclosed in a regulatory filing this week. State public service commissions and the FCC have yet to have their say on the deal.
But there also are other unknowns now, because of the transaction. For example, Windstream hasnt said whether it will make good on PAETECs plans to build a new headquarters in the downtown corridor.
And theres no clarity into how many people may lose their jobs because of the Windtream-PAETEC combination. PAETEC CEO Arunas Chesonis, speaking at his first public appearance since the Windstream purchase was announced Aug. 1, told a Rochester trade group on Thursday night that his transition team is starting to figure out which local PAETEC employees will be kept on and where theyll be stationed, according to TV station WXXI.
Chesonis further addressed concerns that PAETEC is letting down local Rochester residents by selling.
“You know, we in Rochester should want to be let down like this, like, 50 times a year,” Chesonis said, according to WXXI. “We want to have so many new companies starting up, so many entrepreneurs, so many new innovations that every year we’re selling another billion dollar company that started from nothing 10 years earlier.”
Windstream aims to close the PAETEC transaction by the end of the year. If something goes wrong, though, PAETEC will have to pay Windstream up to $40 million in termination fees.