Germany's largest telecommunications company, Deutsche Telekom AG, is reportedly trying to alter or break up the nearly-completed merger between U.S. carrier Qwest Communications and the telecommunications company US West, according to published reports.
Deutsche Telekom has reportedly made an offer to buy Qwest at a price of somewhere between $60 to $79 per share, a premium on its then share price, according to a report in Friday's Financial Times. However, the carrier has "less interest" in acquiring US West at a premium price, according to the report.
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Speculation is so strong about Deutsche Telekom's possible disruption of the Qwest-US West merger that US West Thursday released a statement firmly stating its support for the merger. It also refused to comment on "rumors and speculation concerning potential transactions beyond the Qwest transaction."
US West also reiterated its commitment to pursuing and closing its pending merger with Qwest as required by the existing merger agreement, which has already been approved by shareholders of both companies, US West said.
The all-stock deal between US West and Qwest is valued at $52.3 billion, according to published reports.
Deutsche Telekom declined to comment when asked about any proposed mergers.
Last month, however, Jeffrey Hedberg, board member in charge of international operations at Deutsche Telekom said in a press conference that the pending merger of Mannesmann AG and Vodafone AirTouch PLC had put Deutsche Telekom into an acquiring mood.
"Vodafone-Mannesmann will be a very powerful competitor. This has shaken the world and given us a kick in the pants. We need to move quickly," Hedberg said.
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