PPL sells telecom unit for $50 million |
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Thu, 24 May 2007 19:04
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ALLENTOWN, Pa. (AP) - Electric utility PPL Corp. said Thursday it will sell its telecommunications unit for $50 million to Communications Infrastructure Investments, a holding company organized to acquire and develop fiber-based bandwidth businesses.Including $10 million in debt, the purchase price totals $60 million. The deal is expected to close in the third quarter.PPL said the sale is part of its strategy to focus more closely on its core business of energy supply and delivery.The PPL Telecom network consists of more than 4,000 route miles of fiber with advanced optical systems and services customers in the northeast corridor between New York and Washington D.C.PPL expects to record a sale-related charge in the second quarter of a penny per share, in addition to the 5-cent charge it posted in the first quarter, ahead of the deal.Shares of PPL fell 58 cents to $43.73 in afternoon trading.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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