CenturyTel Shares Up After Citi Upgrade

NEW YORK (AP) — Shares of phone company CenturyTel Inc. rose Thursday after an upgrade from Citi Investment Research, which noted the company's opportunity to improve cash flow through its acquisition of Embarq Corp. and its access to credit markets.

Citi analyst Michael Rollins upgraded the stock to "buy" from "hold" in a note to investors Wednesday.

He said the company's tie-up with Embarq, a larger telecom provider based in Overland Park, Kan., should cut $40 million from the combined company's expenses in 2009. The total cost savings is expected to reach $300 million.

CenturyTel announced in October it would buy Embarq in an all-stock deal valued at $5.8 billion.

Rollins added, "We are encouraged that the credit markets are generally reflecting a more favorable view of the company's credit profile versus its peers."

CenturyTel shares advanced 79 cents, or 2.5 percent, to $31.94 in afternoon trading.