SpringfieldNewsSun.com

URBANA — A planned merger between The Champaign Telephone Co. and American Broadband LLC has been canceled.

The deal is dead — at least for now, Mike Conrad, president of CT Communications said this week.

Because of ongoing discussions between the two companies, Conrad declined to discuss why the merger could not proceed. However, he said his company is still looking for ways to lower costs and increase value for shareholders.

"It was mutual," Conrad said. "We had a lot of good fits, but things just weren't coming together at the right time."

While the companies couldn't come to an agreement, Conrad said they split on good terms and did not rule out a merger with American Broadband in the future if an agreement that would benefit both sides could be worked out.

CT serves about 9,000 customers in Urbana and West Liberty.

They offer voice, data and video service.

Officials from American Broadband could not be reached for comments Friday, April 19.

The next step for CT will be to go back to the board of directors and their financial advisors to review other options to increase the value of their shares, Conrad said.

Dan Harkins, an attorney for a minority of CT shareholders, said his clients were still seeking information on why the merger didn't pan out.

"Right now, it's too early for my clients to decide what they want to do," he said.

Conrad said the merger would have allowed shareholders to receive cash for their shares, but it would have had little effect on CT customers.

Contact this reporter at (937) 328-0355

or msanctis@coxohio.com.

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