Qwest Communications International Inc., Denver, today increased the amount it is willing to pay in its unsolicited stock and cash bids for U S WEST and Frontier Corp. The company also offered to use more cash in an attempt to allay shareholder concerns about the initial bids dilutive effects on the stock. U S WEST and Frontier have already accepted an acquisition bid from Global Crossing Ltd. that would pay about $63 a share. Qwest CEO Joseph P. Nacchio said his board will offer $20 cash and $48 in Qwest stock for each Frontier share and $69 in Qwest stock for each share of U S WEST. The revised offering represents a 12.9% premium to the value of U S WESTs proposed merger with Global Crossing and a 21.1% premium to Frontiers agreement with Global Crossing, based on yesterdays market close. The new offer also contains a collar, which would set a floor on the price of Qwest stock that U S WEST and Frontier would receive in the deal. It also will contain more cash to reduce the bids dilutive effect on Qwests stock.
Qwest Communications International Inc., Denver, today increased the...
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