Skip to main content

Qwest Closes Directories Sale

The big phone company gets some cash just in time to meet its bankers' deadline.

Qwest (Q) closed the second half of its $7 billion directories sale, relieving some of the pressure on the beleaguered local phone company.

A group of private investors, including the Carlyle Group and Welsh Carson Anderson & Stowe, purchased the yellow pages unit called Qwest Dex. The second half of the deal, which closed Tuesday, was valued at $4.3 billion. The first half of the sale was completed Nov. 8, 2002.

The close of the deal comes just weeks before a Sept. 30 deadline imposed by Qwest's bankers. Facing onerous debts, dwindling revenues and an ongoing investigation into its accounting practices, Qwest was forced to sell one of its most lucrative businesses to pay creditors.

Though the sale robs the Denver telco of one of its biggest revenue streams, the company's new top execs will view the move as a major accomplishment as they try to steer the business toward a more stable future.

TheStreet Recommends

Lately, investors had

grown anxious over the company's apparent inability to make any headway on its list of promises. After jumping 3 cents in Tuesday's regular session to close at $4.12, Qwest shares were unchanged in after-hours trading.