Oct 12, 2006 9:19 am US/Mountain
Anschutz To Sell Credit Suisse A Large Qwest Stake
By Sandy Shore, AP Business Writer
DENVER (AP) ―
Qwest Communications International Inc. founder and largest shareholder Philip Anschutz has entered into a contract to sell 80 million shares of the company to Credit Suisse Group in a series of transactions with maturity dates through 2010, according to a regulatory filing made Wednesday.
Anschutz will retain ownership of the shares, including the voting rights, through the length of the contract, the Securities and Exchange Commission filing said.
The transaction allows Anschutz to participate in Qwest's growth between now and the maturity dates, his spokesman, Jim Monaghan, said. "This instrument shows a continued confidence in Qwest and the management team," he said.
The announcement was made after J.P. Morgan analyst Jonathan Chaplin noted that 66 million shares of Qwest had been sold Tuesday night for about $540 million, and he speculated that the seller was Anschutz.
Anschutz, who also has interests in oil, railroads and entertainment, owns about 300 million shares, or 16 percent, of the company. The sale represents 26 percent of Anschutz's holdings in Qwest.
Monaghan declined to comment further. Qwest spokeswoman Diane Reberger said the company does not comment on market activity.
Anschutz retired as a director of Qwest earlier this year so he could concentrate on his growing private empire, including major stakes in oil, railroads, sports teams, a theater chain and newspapers.
With Qwest expected to issue third-quarter results later this month, Chaplin reiterated his positive outlook. "We expect continued improvements in revenue trends, further margin expansion and continued strong growth in free cash flow," he said.
Qwest's stock closed down 18 cents, or 2.2 percent, to $8.19 a share on the New York Stock Exchange. In the past year, it has traded between $3.99 a share and $9.22 a share.
Denver-based Qwest is the primary phone service provider in 14 Midwestern and Western states.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Click to enlarge
Stumble It!
Comments