CHARLESTON, W.Va. -- The Communications Workers of America union has intensified its opposition to Verizon's proposed sale of 617,000 telephone access lines in West Virginia, saying the company wants to divest its assets to reap $3.3 billion in tax-free profits.

Starting Sunday, the union plans to spend thousands of dollars on newspaper and radio advertisements across the state. Union officials also plan to speak to lawmakers during interim meetings Wednesday.

The union alleges Verizon is taking advantage of a federal tax loophole to fund a proposal to sell its wire lines in West Virginia and 13 other states to Frontier Communications Corp. of Stamford, Conn.

Their ad campaign says the merger is, "Good for Wall Street. Bad for West Virginia."

"It's corporate greed," said Elaine Harris, spokeswoman for the union. "It's scary. Verizon has been divesting assets to smaller, less stable corporations in order to reap large tax-free profits."

Verizon spokesman Harry Mitchell said Verizon wants to sell its access lines so the company can focus on its wireless and broadband business. Mitchell said the union has opposed the deal from Day One.

"They're spending their members' dues on advertising in an effort to cloud the issue," he said.

Mitchell said the federal tax law that allows Verizon to avoid paying taxes on the deal -- called a Reverse Morris Trust -- has been on the books for a dozen years.

"It's not a loophole," Mitchell said. "Many companies have used this provision in similar transactions."

Verizon paid $4.4 billion last year in federal, state and local taxes across the U.S., Mitchell said.

He also noted that Frontier plans to open a regional headquarters in West Virginia and possibly create 40 additional jobs, if the $8.6 billion deal closes. Frontier also has promised not to lay off any employees for at least 18 months.

CHARLESTON, W.Va. -- The Communications Workers of America union has intensified its opposition to Verizon's proposed sale of 617,000 telephone access lines in West Virginia, saying the company wants to divest its assets to reap $3.3 billion in tax-free profits.

Starting Sunday, the union plans to spend thousands of dollars on newspaper and radio advertisements across the state. Union officials also plan to speak to lawmakers during interim meetings Wednesday.

The union alleges Verizon is taking advantage of a federal tax loophole to fund a proposal to sell its wire lines in West Virginia and 13 other states to Frontier Communications Corp. of Stamford, Conn.

Their ad campaign says the merger is, "Good for Wall Street. Bad for West Virginia."

"It's corporate greed," said Elaine Harris, spokeswoman for the union. "It's scary. Verizon has been divesting assets to smaller, less stable corporations in order to reap large tax-free profits."

Verizon spokesman Harry Mitchell said Verizon wants to sell its access lines so the company can focus on its wireless and broadband business. Mitchell said the union has opposed the deal from Day One.

"They're spending their members' dues on advertising in an effort to cloud the issue," he said.

Mitchell said the federal tax law that allows Verizon to avoid paying taxes on the deal -- called a Reverse Morris Trust -- has been on the books for a dozen years.

"It's not a loophole," Mitchell said. "Many companies have used this provision in similar transactions."

Verizon paid $4.4 billion last year in federal, state and local taxes across the U.S., Mitchell said.

He also noted that Frontier plans to open a regional headquarters in West Virginia and possibly create 40 additional jobs, if the $8.6 billion deal closes. Frontier also has promised not to lay off any employees for at least 18 months.

"Frontier has had a terrific record of acquiring telecommunications properties in other states," Mitchell said. "Frontier's expertise is serving markets that are rural areas and small- to medium-size cities."

Harris said similar deals under the tax-free provision have been "disastrous" for customers and communities in other states.

Verizon has used the Reverse Morris Trust to unload wire lines in three other states. Two of the three companies that took over the phone lines have since declared bankruptcy.

Frontier and Verizon have said the same problems won't happen in West Virginia because Frontier already has successful customer support, billing and operating systems in place.

Frontier has 144,000 residential and small business telephone access lines in West Virginia. After the deal, the company would have 1.3 million landlines across the Southeast.

Verizon and Frontier hope to complete the transaction sometime next year.

Harris also predicted that Frontier would cut jobs in West Virginia and shift them to other states.

"The proposed deal is another example of corporate greed trumping public good," Harris said. "We're tying to inform and educate people, and keep an eye on what's going on."

The state Public Service Commission has scheduled a series of public hearings, starting Jan. 12. The Federal Communications Commission and regulatory agencies in other states also are reviewing the proposed sale.

Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.