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EMBARQ Investor FAQ's

Click here to access Savvis Investor FAQ
Click here to access CenturyLink Investor FAQ's
Click here to access Qwest Communication Investor FAQ's

  1. When did I receive CenturyTel shares? How many shares did I receive for my Embarq shares?

  2. Were fractional shares issued as a result of the merger?

  3. What are the U.S. tax consequences of the transaction?

  4. What is my cost basis?

  5. I didn’t receive any stock certificates for my CenturyTel stock. Where are my shares?

  6. I was a former Sprint Nextel shareholder. How do I calculate my cost basis?

  7. I need to know the price of Embarq stock on a particular date in the past. How do I find that information?

    Q. When did I receive CenturyTel shares? How many shares did I receive for my Embarq shares?

    A.  The merger of CenturyTel and Embarq was completed on July 1, 2009. Embarq shareholders received 1.37 shares of CenturyTel common stock in exchange for each share of Embarq common stock owned.

    Q. Were fractional shares issued as a result of the merger?

    A.  No. Shareholders will receive a check for the cash value of any fractional shares of CenturyTel common stock as soon as practicable after the merger.

    Q. What are the U.S. tax consequences of the transaction?

    A.  This was structured as a non taxable event. But it does trigger a very small taxable event, because of the fractional shares which were cashed out. You will have to work with your CPA or tax advisor to determine how it’s handled.

    Q. What is my cost basis?

    A.  You do have a basis in the stock.  Whatever you bought your EQ shares for, divided by 1.37 = your cost basis per each CenturyLink share.   Click here for cost basis spreadsheet which will assist you in establishing your cost basis for the EQ/CTL transaction.

    Q. I didn’t receive any stock certificates for my CenturyTel stock. Where are my shares?

    A.  CenturyTel uses the Direct Registration System (“DRS”). Through DRS, your shares are registered electronically on the records of the corporation in an account maintained by Computershare Trust Company, CenturyTel’s transfer agent. Your shares were credited to your account and you will receive a statement evidencing these shares.

    Q. I was a former Sprint Nextel shareholder. How do I calculate my cost basis?

    A.  Embarq shares were received in a spin-off from Sprint Nextel in May 2006. You will need to know what you originally paid for your Sprint Nextel shares to calculate your basis in Embarq shares (and then calculate your new basis in CenturyTel.)

    Your pre-spin-off tax basis in your shares of Sprint Nextel must be allocated between those Sprint Nextel shares and your Embarq shares using 90.761% for Sprint and 9.239% for Embarq. More information about calculating your cost basis may be found in the Sprint Nextel tax information letter mailed to shareholders in late June 2006. Click here to view a copy of that letter.

    Q. I need to know the price of Embarq stock on a particular date in the past. How do I find that information?

    A.  A table showing Embarq trading prices from May 2006 through the merger date is available here.