Qwest Communications International Inc. and its Board of Directors today announced the outcome of its strategic review of its long distance network asset.
After receiving unsolicited indications of interest from potential purchasers of Qwest's long distance network asset, the company and its Board of Directors undertook a comprehensive review of this asset and its operations. Following this review, the company commenced a competitive bidding process. Although there was significant interest in this process from prospective buyers, the company and its Board of Directors have determined that the long distance network asset holds far more value to Qwest shareholders and is more strategically important to Qwest and its customers than is the alternative of pursuing a transaction.
Qwest reaffirms its guidance for the full year 2009, expecting adjusted free cash flow to be $1.4 to $1.5 billion, full year adjusted EBITDA of $4.2 to $4.4 billion, inclusive of an expected increase in non-cash pension and OPEB expense of $200 million, and capital expenditures of $1.8 billion or lower.
“Qwest remains confident in its outlook for 2009 and the ability of its business to continue to perform,” said Edward A. Mueller, chairman and chief executive officer of Qwest. “At the same time, we are committed to taking steps that will benefit our shareholders, customers and employees in every decision we make. We have always taken a disciplined, prudent approach to assessing our business in this ever changing industry. The review we conducted confirmed that our nationwide network is a tremendous asset and delivers best-in-class telecommunications services to businesses and government agencies throughout the country. We are committed to serving those valued customers and remain focused on increasing shareholder value and perfecting the customer experience."