Reply #9: I think Qwest refused to cooperate out of fear of future litigation, NOT [View All]

[MADem]

because they are somehow better than other companies, and upholding truth, justice and the American way. They figured they couldn't afford to be named parties in a future lawsuit. They've had serious liquidity problems in the past.

They aren't saints, just a corporation like any other, but with a decent legal team...they sold their Yellow Pages biz to the Carlyle group (and we know what kind of charmers THEY are): http://www.thecarlylegroup.com/eng/news/l5-news670.html


New York, NY – Global private equity firms The Carlyle Group (Carlyle) and Welsh, Carson, Anderson & Stowe (WCAS) today announced that they have agreed to purchase Qwest Communications’ yellow pages directories business, known as QwestDex, for $7.05 billion. This deal is the largest U.S. buyout since 1989.

James Attwood, Carlyle Managing Director said, “This is a classic win-win transaction: It’s great for our investors and helps Dick Notebaert and his team achieve their objectives of deleveraging the Qwest balance sheet and improving their liquidity position. Our investors will benefit from the stable, predictable cash flows of the directories business without assuming the risks that characterize many other telecom-related investments today.”

“We are looking forward to partnering with the Dex management team and employees in this exciting new chapter in the evolution of the Dex business,” said Anthony deNicola, General Partner at WCAS. “Dex is a terrific company, and we are delighted to be investing in its future.”

The transaction will be completed in two stages. The first stage, involving the sale of QwestDex operations in Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota, and South Dakota, is for $2.75 billion and is expected to close in the fourth quarter of 2002. The second phase, which includes Arizona, Idaho, Montana, Oregon, Utah, Washington, and Wyoming, is for $4.30 billion and is expected to close in 2003.