By PETER HUSSMANN
City of Newton officials, like the rest of the community, are attempting to discern the potential economic impact to Newton following this morning's unexpected announcement that Iowa Telecom will be sold to Little Rock, Ark.-based Windstream Corporation.
In a press release today, City Administrator Tom Wardlow states that city officials just became aware of the planned sale of the Newton-based telecommunications company to Windstream in a $1.1 billion deal.
"The City of Newton has become aware, along with the rest of the community, of the sale of Iowa Telecom," the release states. "Along with the rest of the community, we are trying to gain as much information as possible at this early time.
"The uncertainty that comes right after the announcement of such a significant business event is normal, and hopefully will be resolved as answers to questions become available.
"We look forward to Windstream Corporation becoming a community member, and we are certain that Windstream Corporation will find the quality workforce here in Newton as an asset to their continued expansion."
Windstream's announcement of plans to acquire Iowa Telecom is the third acquisition or closing announced by the company this month. In early November, the company announced plans to purchase privately held NuVox of Greenville, S.C., at a price of $643 million and about a week later said it had closed on the $333 million acquisition of D&E Communications of Ephrata, Pa.
With Maytag's recent closure in Newton still etched heavily upon local residents' mind, the overriding concern is what might become of the Iowa Telecom jobs in Newton going forward. In the release announcing the sale, Windstream said it "will maintain an operating presence in the headquarters building in Newton and plans to expand the existing Newton call center."
A Windstream company spokesperson expounded on the future of Iowa Telecom operations in Newton after being contacted by the Newton Independent.
"It's premature to speculate on the size of the workforce that will remain at the headquarters building after the transaction closes," said David Avery, director of corporate communications for Windstream. "We will conduct a joint transition process with Iowa Telecom to evaluate overall staffing needs and identify redundant functions in order to put together an integration plan to provide a seamless transition for customers."
Windstream currently employs 7,100 through its operations in 16 states. In late September the company announced plans to restructure its workforce by eliminating 350 positions "to offset revenue pressure in the residential voice business." The company said it planned to take a $15 million charge in the fourth quarter for costs associated with severance for the positions to be eliminated.
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