Monday, June 06, 2005

Qwest seen having eyes for XO

Carolyn Duffy Marsan and Jim Duffy wrote this past Friday in NetworkWorld:

Qwest is reportedly sizing up XO Communications as a possible takeover target, a source says.

Speculation that Qwest might pursue XO and other, smaller service providers surfaced after Qwest lost out to Verizon in its bid for MCI. Observers at that time said Qwest might look to acquire a smaller carrier with nationwide facilities, a focus on enterprise customers and little debt — such as one that has emerged from Chapter 11 bankruptcy. XO, Global Crossing and Broadwing have done so.

A source says Qwest was performing due diligence on XO last week as a precursor to perhaps making an offer for the carrier. Qwest and XO declined to comment on “rumor and speculation.”


Post a Comment

<< Home