Verizon Communications is nearing a deal with Frontier for $10 billion in wireline telecom assets

According to the Wall Street Journal, Frontier Communications FTR and Verizon Communications VZ are approaching the end of a deal which would have Verizon selling selling wireline assets worth $10 billion to regional telephone operator Frontier.

The assets provide high speed Internet, phone and television services. The sale of assets come at a time when Verizon is trying to raise money to pay for new airwaves and pay down debt from its acquisition of Vodafone Group VOD. Verizon sees the wireless market as the key to future success and thus is scaling back on its telephone and internet resources. The company is the largest U.S. wireless operator by subscribers.

Verizon Chief Executive Lowell McAdam said on a January call with investors that "there are certain assets on the wireline side that we think would be better off in somebody else's hands so we can focus our energy in a little bit more narrow geography."

Frontier Communications has traded over 7 percent higher than yesterday’s close due to the news which would be the largest M&A deal in the company’s history.

Verizon has traded at $47.72, down 0.13 percent.