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...

By Michael Roberts

June 8, 2009

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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.

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Michael Roberts began his career with Westword in 1990 as music editor. In 1999, he took on a new role, full-time media reporter, as author of a column called The Message. In 2008, he became the lead writer for Westword's news blog, The Latest Word, a position he held until January 2023. Michael continues to freelance for Westword, covering everything from business to sports and the media; he also contributes to Jazziz, a national music magazine. He holds a bachelor's degree from what is now Colorado Mesa University and master's degrees from the University of California, Los Angeles, and Northwestern University.

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