Qwest reportedly is asking for bids on its national fiber-optic network to be submitted by early next month in an offering that analysts say may be overpriced.
Qwest is seeking more than $2 billion for the voice and data network, although prospective bidders likely will offer less, Reuters reported Thursday, citing unnamed people familiar with the deal.
The Denver-based phone and Internet company has not acknowledged that the fiber-optic assets are for sale, but analysts widely believe the network is being shopped.
“There have been enough leaks that Goldman Sachs has been hired (to broker the deal) that it seems to be true,” said Donna Jaegers, a telecom analyst with Denver-based D.A. Davidson & Co. “But $2 billion to $3 billion is a fairly hefty price.
“I’m turning up more evidence of people not being interested than of being interested.”
Companies mentioned as possible bidders include Verizon, AT&T, Sprint and metro Denver firms Level 3 Communications and TW Telecom.
Sale of the nationwide fiber-optic network would leave Qwest with its 14-state local-phone business. Some analysts have speculated that if the long-haul network is sold, Qwest could become either an acquirer or an acquisition target of another regional phone firm.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
