Update: Verizon Ends Pact to Acquire NorthPoint

Updated from 2:31 p.m. ET

Verizon(VZ Quote - Cramer on VZ - Stock Picks) terminated its agreement to acquire NorthPoint Communications(NPNT Quote - Cramer on NPNT - Stock Picks), citing the deterioration in NorthPoint's business, operations and financial condition since Aug. 7 when the companies agreed to merge their digital subscriber line businesses.

Verizon also said it has no obligation to arrange for NorthPoint to receive additional financing. The $800 million acquisition agreement, which was slated for completion next year, called for the companies to combine their DSL businesses to form a national broadband company.

In a response, NorthPoint said "Verizon was not entitled to terminate these agreements, and we are exploring all our options, including funding options and legal remedies."

Shares of NorthPoint were halted before the market closed at $2, well off the 52-week high of $34.75, but lost further ground after hours, and were recently quoted at 81 cents on the Island ECN.