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R.H. Donnelley To Acquire Dex Media
Excerpt from the InvestorGuide.com Stock of the Day on 10/3/2005

Cary, North Carolina-based Phone-book publisher R.H. Donnelley Corp. agreed to buy its larger counterpart Colorado-based Dex Media Inc. $4.2 billion in cash and stock. The deal unites two of the nation's largest Yellow Pages companies, and it would make Donnelley the third-largest telephone print and Internet directory publisher, behind Verizon and SBC and ahead of BellSouth. This merger would create a team with business in 28 states and more than 600 directories with a total circulation of 73 million.

Under the agreement, Donnelley will pay $12.30 in cash and 0.24154 common share for each share of Dex, or a total of $1.85 billion in cash and 36.4 million shares of Donnelley. Donnelley CEO David Swanson will serve as CEO of the new company, which will be named R.H. Donnelley and continue to be headquartered in Cary. Upon the transaction's completion, the company will appoint seven and six directors, respectively, to the 13-member board.The Senior management will remain intact, with Donnelley's Dave Swanson as CEO, Peter McDonald as COO and Steve Blondy as CFO. Dex CEO George Burnett will serve as board chairman. Currently, it's planned that current Dex shareholders will control about 53 percent of the combined company. Additionally, Donnelley will also assume Dex's net debt outstanding, which will probably be around $5.3 billion at the end of the year. More >


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R.H. Donnelley (RHD) Upgrades

Date
Analyst
Old Rating
New Rating
09/26/2008
Deutsche Bank
Sell
Hold
05/07/2008
Deutsche Bank
Sell
Hold
02/12/2007
J.P. Morgan
Overweight
Neutral
11/27/2006
Deutsche Securities
Buy
Hold
10/12/2005
Bear Stearns
Outperform
N/A

R.H. Donnelley (RHD) Downgrades

Date
Analyst
Old Rating
New Rating
02/29/2008
Deutsche Bank
Hold
Sell
02/28/2008
J.P. Morgan
Overweight
Neutral
02/08/2008
Deutsche Bank
Buy
Hold
02/27/2007
Morgan Stanley
Equal-Weight
Overweight
02/09/2006
Deutsche Securities
Hold
Buy

R.H. Donnelley (RHD) New Coverage

Date
Analyst
Rating
01/31/2008
Wachovia
Market Perform
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