Sunday, June 7, 2009

Qwest to Keep its Long Haul Network, Reaffirms 2009 Guidance

After a strategic review of its long distance network, Qwest Communications has decided to keep it as corporate asset. The company said it received unsolicited indications of interest from potential purchasers and then followed-up by launching a competitive bidding process. Although there was significant interest in this process from prospective buyers, the company and its Board of Directors have determined that the long distance network asset holds far more value to Qwest shareholders and is more strategically important to Qwest and its customers than is the alternative of pursuing a transaction.

Qwest also reaffirmed its guidance for the full year 2009, expecting adjusted free cash flow to be $1.4 to $1.5 billion, full year adjusted EBITDA of $4.2 to $4.4 billion, inclusive of an expected increase in non-cash pension and OPEB expense of $200 million, and capital expenditures of $1.8 billion or lower.

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