Qwest Communications International Inc., the embattled telecommunications company facing a cash crunch and criminal probe, said Monday it had received multiple bids for all or part of QwestDex, a directory publishing business that some analysts speculate could fetch up to $10 billion.
In a terse statement released Monday, Qwest said it “is continuing discussions with the bidders and expects to complete those discussions in the near future.”
“There can be no assurance that the company will enter an agreement with respect to the purchase of all or part of QwestDex or what the timing or terms and conditions of an agreement might be,” the statement read.
Denver-based Qwest faces a cash crunch as $5.6 billion of debt is maturing over the next year.
The local telephone and Internet giant, which derives 90 percent of its EBITDA (earnings before interest, taxes, depreciation and amortization) within a 14-state region, had more than $1 billion of available cash and $26.6 billion in debt at the end of the first quarter.
Last week, Qwest affirmed the U.S. Attorney’s Office in Denver has launched a criminal investigation into the company, signaling another blow to a carrier that has seen its market value crumble in the face of a weak regional economy and sluggish global broadband market.
Last year Qwest posted a $4.023 billion net loss off $19.74 billion in revenue. The carrier may restate its 2001 revenue at a time when corporate giants -- including WorldCom Inc. (www.wcom.com) -- are the subjects of alleged accounting scandals, according to recent media reports.
Qwest did disclose Friday a ray of good news. The company has filed an application with the FCC (www.fcc.gov) to provide long-distance service in Montana, Utah, Washington and Wyoming, bringing to nine the number of states where applications are pending.
Qwest filed an application June 13 to provide long-distance services in Colorado, Idaho, Iowa, Nebraska and North Dakota. Qwest expects the FCC to make a decision in September whether to approve the applications.
