Nov 21, 2006 9:50 am US/Mountain
Anschutz Signs Contract To Sell Qwest Stake
DENVER (AP) ―
Philip Anschutz,
Qwest Communications' founder and largest shareholder, has entered into a contract to sell an additional 25 million shares and also agreed to donate another 53 million shares to the Anschutz Foundation, the company said Monday.
The Denver billionaire also acquired 2.7 million shares as a result of a previous agreement, according to the company's
Securities and Exchange Commission filing.
The contract agreement announced Monday marks the latest in a series of so-called forward sales contracts that Anschutz has entered recently, which allow him to retain ownership and voting rights of the stock through the length of the contract agreement.
With the announcement, Anschutz, the Anschutz Co. and the Anschutz Family Investment Co. LLC own about 66.4 million shares of Qwest Communications International Inc. that are not subject to existing pledges, forward contracts or call options, the SEC filing said.
The filing was made public after the market closed Monday. Qwest's stock closed at $7.77 a share on the New York Stock Exchange.
Forward sales contracts are often used by executives to profit from a stock's appreciation while hedging against a decline.
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.
The Anschutz Foundation provides grants and other funds for charitable endeavors, including a multimillion donation for a patient care pavilion at the University of Colorado's Health Sciences Center on the site of the former Fitzsimons Army Medical Center in suburban Aurora.
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 This material may not be published, broadcast, rewritten, or redistributed.)
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