Qwest may be considering selling its namesake, its long distance/transport and enterprise unit. If a sale happens, Qwest would be left with its local exchange carrier business, basically the former U.S. West. The Wall Street Journal (subs. req.) is reporting that such a Qwest sale could generate $2 billion to $3 billion and AT&T, Verizon, Level 3, and TW Telecom are possible suitors. No companies linked to the WSJ story have offered comment.
We question why Qwest would pursue such a strategy, unless its financial situation dictates no other option. It has a considerable debt load, which is difficult to manage without any other growth engine. For right now, their enterprise and transport business is their crown jewel. Without it, you’d have to question their long term viability. Many question that viabilty with or without a sale.
