Looks like Frontier is still with us:
Monday June 28 9:28 PM ET
Frontier Rebuffs Qwest Takeover Bid
By NOELLE KNOX AP Business Writer
NEW YORK (AP) - Frontier Corp. (NYSE:FRO - news) has again sidelined a takeover offer from
Qwest, the upstart telecommunications company that is trying to build a global network for high-speed Internet traffic.
The announcement late Monday may spur Qwest Communications International Inc. to take its $11.4 billion cash and stock
bid directly to Frontier's shareholders.
Qwest made offers earlier this month to acquire Frontier, a long-distance and local phone company, and U S West Inc., a
Denver-based regional phone company. Qwest sweetened its proposals last week after its first bids were not accepted.
Qwest is trying to break up an agreement the two companies have made to be purchased by rival Global Crossing Ltd
(Nasdaq:GBLX - news). Both Qwest and Global Crossing are building worldwide fiber-optic cable networks to carry radio,
TV, e-mail and other data over the Internet.
Frontier's board said it ''is continuing to evaluate the revised proposal by Qwest Communications to acquire Frontier'' but said
it still plans to proceed with its merger with Global Crossing.
If Frontier doesn't act soon, Qwest may try to go around the company's management by sending its buyout offer directly to
shareholders, asking them to ''tender'' or offer their shares for sale.
Qwest sent letters Monday to all its investors to stress its determination to acquire U S West and Frontier.
''As circumstances change, we may consider adopting different strategies to encourage U S West and Frontier, or their
shareowners, to accept our offers, and we may set a deadline by which they must do so,'' wrote Joseph P. Nacchio, Qwest's
chairman and chief executive, in the letter.
Brian Hayward, portfolio manager for the Invesco Utilities fund, who received a copy of the letter, said, ''I understand the
strategy behind what they (Qwest) are doing.''
But he added, ''hostile tenders are never as good as the acceptance of a friendly offer, so we just have to wait and see.''
Qwest, however, may reconsider its prospects. Frontier also said late Monday that its profits for the second quarter and the
year would fall far short of Wall Street's estimates. Frontier, based in Rochester N.Y., blamed its troubles on pricing erosion in
the long-distance market.
Monday night, Qwest said it ''will not revise its current proposal to acquire Frontier'' especially in light of its weaker financial
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