Advertisement
YOU ARE HERE: LAT HomeCollectionsMergers

The Cutting Edge

Deutsche Telekom and Qwest Reportedly Discussing Merger

March 02, 2000|From Bloomberg News

DENVER — Deutsche Telekom and long-distance provider Qwest Communications International Inc. are in merger talks as Deutsche Telekom seeks access to the world's largest telecommunications market, USA Today reported.

Talks between Deutsche Telekom Chief Executive Ron Sommer and Qwest Chairman Joseph Nacchio and founder Philip Anschutz have heated up, the paper said, citing unidentified sources close to the companies.

Qwest shares surged $11.75 to close at $58 and Deutsche Telekom's American depositary receipts rose $3.94 to close at $88.25. Both trade on the NYSE.

Buying Qwest would help Deutsche Telekom expand into new markets. Reports of the talks come a day after US West Inc. Chief Executive Sol Trujillo, whose company is being bought by Denver-based Qwest, said he'll quit over disagreements with Nacchio.

Qwest has a market value of $44.3 billion. It's unclear whether Deutsche Telekom would rather buy Qwest as its purchase of US West is pending or wait until it's completed and take over both companies, the paper reported. US West shares rose 6.38 to close at $79 on the NYSE.

Advertisement
Los Angeles Times Articles
|
|
|