[1st-mile-nm] Qwest being seen as likely takeover target - and it will dissolve in the breakup

[Steve Ross]

The market valuation is $8 billion, which would suggest a price of $12
billion, but the Denver Post says it's worth $20 billion at $1500 a line
plus some other businesses.

In other words, the stock is undervalued due to poor management, which would
suggest that it can be had. But the long-term debt is a bit frightening in
this day and age. Smaller buyers would be unable to retire the debt and
improve service, even at a buyout that gave shareholders a 50% premium over
the current stock price.

Qwest had been selling off very rural areas (and creating about 1,000 small
ILECs in the process) until three years ago. That could resume if potential
buyers could fine financing. The very rural areas can get going-forward
capital loans from RUS and operating funds from USF. But it is a bit too
late for Stimulus money -- the final NOFA is already on the table -- and ESF
is due for an overhaul. So that is dicey as well.

-- 
Steve Ross
201-456-5933 mobile
781-284-8810 landline
707-WOW-SSR3 (707-969-7773) Google Voice
editorsteve (Facebook)
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editorsteve at gmail.com

On Sun, Feb 7, 2010 at 12:39 PM, pete baston <pete at ideapete.com> wrote:

>  http://www.denverpost.com/ci_14346718
>
>
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> --------------------------------------
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> Peter Baston
>
> IDEAS business technology integration
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> www.ideapete.com
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> Mailto:pete at ideapete.com
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