Qwest began receiving preliminary bids for its long-distance business this week, but the initial valuations are well below the $2 billion to $3 billion the Denver-based telecommunications company sought, according to people familiar with the matter. Some parties have valued Qwest’s long-haul network — which carries long-distance phone and data traffic and provides advanced services for corporate and government customers — at less than $1 billion.
Among the most likely buyers for the network is Broomfield-based Level 3 Communications, which is formulating a potential bid, the people said. XO Communications, controlled by billionaire investor Carl Icahn, and Douglas County-based TW Telecom Inc. also have expressed interest in Qwest’s assets, the people said.
Bids for Qwest’s network were due Monday, but the company extended the process, the people said.
A spokesman for Qwest declined to comment.
Qwest’s shares closed down 4.8 percent at $4.19 on the New York Stock Exchange. Qwest has a market capitalization of $7.2 billion, and its shares are up 16 percent since April 2, when it was reported to be seeking a buyer for the long-distance business.
