I need a new phone company
Qwest, the up-and-comer telco that ate US Worst, my local carrier, is writing down the value of its fiber network. That means they're admitting they paid too much or, rather, that they should have recognized everyone else's building out meant they would be faced with vast over-capacity in the market.
Of a massive $40.8 billion write down, $10.8 billion represents the premium paid for to get the fiber into the ground. The rest reflects the premium paid by Qwest for US West. The company has about $700 million in cash and long-term debts in the $22 billion range. Looks like a job for Teddy Forstmann (but, according to Forbes, Forstmann doesn't want the job) or Carl Icahn. Can anyone say "blood's in the water!"
Posted by Mitch Ratcliffe at October 29, 2002 03:46 PM | TrackBack