Analysts Say Idearc Was Strong Enough For $9B Debt

Law360, Dallas (October 23, 2012, 9:52 PM EDT) -- Investment bankers who advised Verizon Communications Inc. in its $9.9 billion spinoff of Idearc Inc. testified Tuesday in Texas federal court the company was in good financial shape before the deal, refuting U.S. Bank NA’s allegations that Idearc was insolvent and doomed to bankruptcy.

Analysts for JPMorgan Chase & Co., Bear Stearns & Co. Inc. said their analyses leading up to the 2006 deal showed Verizon’s Yellow Pages business was worth more than $12 billion and easily supported the $9.1 billion in debt raised in the...
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