Qwest no longer selling long-distance net
Qwest Communications International Inc. said Monday it is not selling its long-distance phone network after completing a comprehensive review and a bidding process with interested parties.
The company’s shares fell more than 4% in premarket trading after Qwest (Q, Fortune 500) said the company had decided that the phone network asset holds far more value to its shareholders and is more strategically important to the company.
Last week the Wall Street Journal reported that Qwest received bids for the long-distance network below the $2 billion to $3 billion the company was hoping for.
The report said companies including Level 3 Communications Inc healthinsurance., (LVLT) XO Communications (XOHO) and TW Telecom Inc. (TWTC) all expressed interest in the network.
Qwest also reaffirmed its 2009 outlook, saying it expects adjusted free cash flow to be $1.4 billion to $1.5 billion and earnings before interest, taxes, depreciation, and amortization of $4.2 billion to $4.4 billion inclusive of pension expenses.
Shares fell 4.3% to $3.99 in premarket trading.
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