May 3 (Reuters) - Wireless tower owner Uniti Group ( UNIT )

said on Friday it would merge with telecom services

provider Windstream Holdings, nearly a decade after their

separation.

Windstream spun off Uniti in 2015 and filed for bankruptcy

four years later.

The proposed deal offers Windstream shareholders $425

million in cash, $575 million of preferred equity and a 38%

stake in the combined company, with Uniti shareholders owning

the rest.

Some of Windstream's largest shareholders including activist

investor Elliott Investment Management, which is also a holder

of Uniti's equity and debt, will be rolling substantially all of

their investment value in Windstream into the combined company.

"As a combined company, we will continue our disciplined

growth trajectory while expanding FTTH (fiber-to-the-home)

build-outs and significantly improving our overall financial

profile," said Uniti CEO Kenny Gunderman.

The merger is expected to close in the second half of 2025

and the combined company will continue to operate as Uniti and

be headquartered in Little Rock, Arkansas.