CITIZENS-UTILITIESCZN Citizens Utilities Continues Progress With Separation; Files Petitions With Six Additional State Utility Regulators.STAMFORD, Conn--(BUSINESS WIRE)--December 7, 1998--Citizens Utilities (NYSE NYSE See: New York Stock Exchange : CZN, CZNPr) announced today that it has filed petitions with utility regulators in the states of Idaho, Montana, New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , Oregon, Utah and Washington for approval to proceed with its separation plan. The petitions request the authority to transfer Citizens' telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. businesses to a new company ("NewCo") as yet unnamed, as part of a tax-free spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of these businesses to Citizens' shareholders. The state filings contain information required by regulators to review the proposed transaction, including legal structures, management and financial data. The separation, announced on May 18, 1998, will divide Citizens' public services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. businesses and telecommunications businesses into two stand-alone, publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . The company expects to complete the separation in the second half of 1999. The goal of the separation is to enable each business to independently pursue its own strategies, operate and compete more effectively, thereby benefiting the customers of each business and increasing shareholder value. Citizens Utilities provides communications services and public services, including gas distribution, electric distribution, water distribution and wastewater treatment services to approximately 1.8 million customers in 21 states. Citizens owns 83% of Electric Lightwave, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ELIX), a leading full-service, facilities-based competitive local exchange carrier, and has a significant investment in Centennial Cellular Corp. (NASDAQ:CYCL), a cellular telephone company. Post separation, NewCo will comprise more than 900,000 access lines operated by Citizens Communications Citizens Communications is the parent company of Frontier Telephone, providing telephone and internet access in 24 states. The company headquarters are located at 3 High Ridge Park in Stamford, Connecticut. and an 83% interest in Electric Lightwave. Electric Lightwave and Citizens Communications will be operated as separate and independent entities. Citizens' public services businesses, providing approximately 860,000 customers with natural gas, synthetic gas, electricity, water and wastewater treatment services, will continue to trade publicly under the name Citizens Utilities after the separation is complete. This document contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. These and all forward-looking statements are only predictions or statements of current plans that are constantly under review by the company. All forward-looking statements may differ from actual results because of, but not limited to, the company's ability to obtain the necessary regulatory and tax approvals and complete the separation process, changes in the local and overall economy, changes in market conditions for debt and equity securities, the nature and pace of technological changes, the number and effectiveness of competitors in the company's markets, success in overall strategy, weather conditions, changes in legal or regulatory policy, changes on legislation, the company's ability to identify future markets and successfully expand existing ones and the mix of products and services offered in the company's target markets. These important factors should be considered in evaluating any statement contained herein and/or made by the company or on its behalf. The foregoing information should be read in conjunction with the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10-K and 10-Q. The company has no obligation to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . |
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