Qwest Receives Low Long-Distance Bids

Qwest Communications(Q Quote) has received preliminary bids for its long-distance business that are below the $2 billion to $3 billion it sought, the Wall Street Journal reports.

The lower-than-expected bids could force the telecommunications company to call off the auction or accept a significant discount, the newspaper reports.

Some parties have valued Qwest's network, which carries long-distance phone and data traffic and provides advanced services for corporate and government customers, at under $1 billion, the Journal reports, citing people familiar with the matter.

The newspaper reports the most likely buyer for the network is Level 3 Communications(LVLT Quote), which is formulating a potential bid, the people said. XO Communications, which is controlled by billionaire investor Carl Icahn, and TW Telecom (TWTC Quote) also have expressed interest, the people said.

A spokesman for Qwest declined to comment for the Journal.

Bids for Qwest's network were due Monday, but the company extended the process, the Journal notes.