Will Qwest stock take a hit due to failure to sell long-distance service?
Qwest has been hoping to peddle its long-distance network in exchange for somewhere between $2 and $3 billion. But according to the Wall Street Journal, the asset prompted offers well below that range, with some at prominent digit shy of what the operation wanted. Hence, Qwest is keeping the network for now amid predictions that the company will probably take a hit because of the bidding war that wasn't. The Journal quotes D.A. Davidson & Co. analyst Donna Jaegers, who says "stocks typically deflate when a company holds an auction for assets but fails to find a buyer."
That wouldn't be good news for investors in any economy. In this one, it's even worse.