This excerpt taken from the VZ 8-K filed Feb 29, 2008.
New Company to Merge With FairPoint Communications
NEW YORK Verizon Communications Inc. today announced that subject to the satisfaction of certain conditions, its Board of Directors has established a record date of March 7, 2008, and a closing date of March 31, 2008, for the proposed spin-off of shares of Northern New England Spinco Inc. (Spinco), a subsidiary of Verizon, to Verizon stockholders.
Spinco will hold specified assets and liabilities that are used in Verizons local exchange business and related activities in Maine, New Hampshire and Vermont. Immediately following the spin-off, Spinco will merge with FairPoint Communications, Inc. (NYSE:FRP). When the merger is completed, it is estimated that Verizon stockholders will collectively own about 60 percent of the shares of FairPoint common stock on a fully diluted basis, and FairPoint stockholders will collectively own about 40 percent.
Verizon News Release, page 2
Holders of Verizon common stock will not be required to pay for any shares of FairPoint common stock that they receive and will also retain all of their shares of Verizon common stock.