A 10-year contract from the U.S. Defense Information Systems Agency should be worth at least $100 million to Qwest, said Diana Gowen, vice president of government services for the Denver-based company.
Qwest will provide the government with private lines that will connect military bases in 11 states, including Colorado. Separately, Raymond James analyst Frank Louthan upgraded Qwest stock from “market perform” to “outperform.”
Additional business news briefs:
AMSTERDAM, Netherlands
Qwest is sued over failed European plans
Cargill Financial Markets and Citibank have filed a lawsuit in the District Court of Amsterdam against Qwest and others connected to its failed European joint venture, KPNQwest, according to a regulatory filing. Others named in the suit include KPN Telecom BV, Koninklijke KPN NV and former Qwest chief executive Joe Nacchio, Qwest said in the filing.
The lawsuit alleges that the defendants misrepresented KPNQwest’s financial and business condition in connection with the origination of a credit facility and wrongfully allowed KPNQwest, which eventually went bankrupt, to borrow funds under that facility.
BROOMFIELD
Pandora picks Level 3 to help its Net radio
Level 3 Communications said Wednesday it has been selected by Pandora to support the company’s Internet streaming-radio service.
Broomfield-based Level 3 will provide Pandora, a music-discovery service, with network solutions including high-speed Internet access of up to 10 gigabits per second. Terms of the deal weren’t released.
DENVER
Covered walk added to Union Station plan
The development team of Continuum Partners and East West Partners has officially added a covered moving walkway to its Union Station proposal.
The walkway would run one block between the proposed light-rail station at 17th and Chestnut streets and the entrance to commuter rail and buses near Wewatta Street.
It would move through a new public plaza envisioned by the team as an extension of Union Station. The team also is considering turning the walkway into a public art amenity to enhance the public plaza.
DENVER
Evergreen shares fall 27.5% after Q3 loss
Shares of Denver-based Evergreen Energy Inc., formerly KFx, fell 27.5 percent Wednesday after the company reported a third-quarter operating loss of $17.4 million, compared with a loss of $4.9 million a year earlier.
The stock lost $3.65 to close at $9.60. Earlier this year, it had reached a record high of $21.44.
Evergreen Energy, which treats coal to increase its energy content and reduce pollutants, attributed the loss to startup costs at its new plant near Gillette, Wyo., and higher general and administrative expenses.
BOULDER
Wild Oats’ CEO pay $50,000 a month
Boulder-based Wild Oats Markets Inc. has agreed to pay interim chief executive Gregory Mays $50,000 a month for the time he serves in that role. Mays, who remains chairman of the board, took over the CEO role following the resignation of Perry Odak in October.
Mays will also be reimbursed for “reasonable out-of-pocket expenses incurred in the performance of his duties as interim CEO, including travel and housing expenses.” Mays will also receive 20,000 fully vested restricted stock units and may also receive an additional 10,000 fully restricted stock units when a new CEO is appointed.
FOSTER CITY, Calif.
Gilead extends date for Myogen stock offer
Gilead Sciences Inc., maker of the world’s best-selling AIDS medicine, extended the expiration date for its tender offer for all outstanding shares of Myogen Inc. through Nov. 13. Earlier this month, Gilead agreed to acquire Westminster-based Myogen for about $2.5 billion.
The previously announced date for the expiration was Nov. 10, a federal employee holiday.
DENVER
Micro Business, Kaiser team up on insurance
The Micro Business Development Corp., a Denver nonprofit that provides training and assistance to entrepreneurs, announced Wednesday a partnership with Kaiser Permanente to provide low-cost health insurance to small-business owners.
The program offers greatly reduced insurance rates for up to 24 months for clients of the nonprofit living in the metro area.
DETROIT
Lower gas cost boosts truck sales in October
Lower gas prices boosted truck sales in October, helping two of the domestic Big Three and Toyota Motor Corp. post sales gains Wednesday compared with a dismal October last year. General Motors Corp. led all automakers with a 17.3 percent increase, fueled by a 33.2 percent rise in truck and sport utility vehicle sales.
LOS ANGELES
Disney in talks to sell stake in E! to Comcast
Walt Disney Co., the second- largest U.S. media company, is in talks to sell its 39 percent stake in the E! Entertainment Television channel to Comcast Corp., sources told Bloomberg News.
The talks are part of broader negotiations to renew contracts under which Disney networks such as ESPN are carried by Comcast, the world’s largest cable operator, the people said. Disney is in similar discussions with Time Warner Cable, Time Warner spokesman Mark Harrad said.
