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News > Companies
The Qwest for U S West
July 5, 2000: 7:23 p.m. ET

Broadband Internet firm cheers merger completion; stock soars 12 percent
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NEW YORK (CNNfn) - Qwest Communications International Inc. began its pursuit of U S West in June of 1999 when it sparked a bitter takeover battle for its telecom rival, but the gambit appears to have paid off.

graphicLast Friday Qwest completed the $43.5 billion merger deal with Denver-based U S West, and the new company, which carries the Qwest name, will replace U S West on the closely watched S&P 500 index.

U S West had originally agreed to be bought by Frontier as part of a merger deal it had with Global Crossing (GBLX: Research, Estimates), but in July of 1999, the Baby Bell changed its position and abandoned the deal with Frontier for a merger with Qwest (Q: Research, Estimates). 

The merger deal was completed in less than a year, faster than many other large merger and acquisition deals in the telecom industry.

graphicWhile serious differences between the two companies' top officials - leadership and strategic issues prompted the departure of U S West chief executive Solomon Trujillo - puzzle industry experts, Joseph Nacchio, chairman and CEO of Qwest, told CNNfn's N.E.W. Show that he remains optimistic about the future outlook of the new company. (288KB WAV)(288KB AIFF)

The new Denver-based Qwest has a market capitalization of $85 billion and serves about 29 million customers in 14 states.

Shares of Qwest soared on Wednesday after Banc of America analyst Andrew Hamerlin raised his 12-month price target for the company to $69 from $67. The stock shot up 6-1/8, or 11.8 percent, to 57-7/8. Back to top

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