Let the fireworks begin... :-)
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June 13, 1999
Dow Jones Newswires
Qwest Commun Offers To Buy U S West, Frontier Corp.
DENVER -- Qwest Communications International Inc. (QWST) offered to acquire U S West Inc. (USW) and Frontier Corp. (FRO) in separate transactions for a total of $55 billion cash and equity and the assumption of $11.4 billion debt.
In a press release Sunday, Qwest said it offered $80 a share for U S West, payable in Qwest stock.
Qwest offered Frontier shareholders up to $75 a share, consisting of $20 a share cash and up to $55 a share in Qwest stock.
New York Stock Exchange-listed shares of U S West closed Friday at 54 7/8 on volume of 2 million shares.
Frontier shares, also listed on the New York Stock Exchange, closed Friday at 55 7/16 on volume of 390,800 shares.
Nasdaq-listed shares of Qwest closed Friday at 44 7/8 on volume of 5 million shares.
Qwest's offer for U S West is based on exchanging 1.738 shares of Qwest for every share of U S West.
If Frontier agrees to the transaction, Qwest will increase its offer for U S West to 1.783 shares of Qwest for each share of U S West.
Qwest said it will account for the proposed acquisition of U S West as a purchase. The transaction is tax-free to U S West shareholders.
Qwest also would assume $10 billion of U S West debt.
Qwest would exchange 1.181 shares for each share of Frontier if U S West also doesn't agree to being acquired.
If U S West agrees to the transaction, Qwest will increase its offer for Frontier to 1.226 shares of Qwest for each share of Frontier.
The proposed $75-a-share purchase of Frontier assumes that Qwest will exchange 1.226 shares for every share of Frontier.
Qwest would account for the Frontier transaction as a purchase, as well. The stock portion would be tax free to Frontier shareholders.
Qwest said it also would assume $1.4 billion of Frontier debt.
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