Qwest chief says rural lines on block – Notebaert: We’ll listen to offers

There is no "for sale" sign on Qwest’s door, but the right offer could win some of the company’s rural customer base, Qwest chief executive Richard Notebaert said Tuesday.

Notebaert said during the company’s analyst-day presentation that rural lines are valuable property that contribute to the company’s bottom line.

By Tom McGhee
Denver Post Business Writer

http://www.denverpost.com/Stories/0,1413,36~33~1976999,00.html

But "when I get a call from a buddy in New York who says, ‘we would like to buy Wyoming, or the whole state of New Mexico,’ I say, ‘Oh, really? … But before we waste one calorie, tell me what you are thinking about. If that is an interesting number, you are welcome to come in and we will look at it,"’ Notebaert said in response to an analyst’s question.

"It is encouraging that they are willing to divest some assets" to create shareholder value, said Guzman and Co. analyst Patrick Comack, who attended the presentation in New York.

Notebaert said Qwest has regained much of the credibility it lost with customers, regulators and government officials after the company restated results from 2000 to 2002 to remove $2.59 billion of revenue.

The Securities and Exchange Commission and Justice Department investigations both responded to the accounting irregularities by launching investigations that continue.

Janco Partners analyst Tom Friedberg said it is unlikely that Qwest itself will be sold before the company’s legal troubles are resolved.

"Nobody will buy it before the liability issues are settled," he said.