Covad Communications settles differences with Verizon
Covad Communications has announced that they have settled with Verizon Communications over their antitrust lawsuit and other disputes. This announcement helped Covad improve the prices of their shares in the stock market by as much as 51 percent. The latest deal between the two companies would see Covad expanded its line-sharing agreement with Verizon.
As a result, Covad would be able to use lines sold by Verizon voice resellers to offer its own Digital Subscriber Line services. In addition, Covad also went into a similar agreement with MCI, which is being acquired by Verizon Communications. The companies however declined to reveal the financial details behind their settlement.
This announcement led to an increase in the share prices of Covad by 34 cents to $1.01 in the American Stock Exchange. Charles Hoffman, Covad’s chief executive officer said on this settlement deal: “These agreements build a new, positive relationship with Verizon.â€ Randal Milch, a senior vice president and deputy general counsel at Verizon added: “We look forward to a continuing relationship with Covad as a valued supplier and customer to MCI. We are also pleased to begin this new chapter in the Covad-Verizon relationship.”