D.C. telecom cites price in spurning Qwest asset
Tuesday, May 19, 2009
Washington, D.C.-based Cogent Communications looked at Qwest's
fiber-optic network and decided not to consider purchasing it
because the asking price was too high relative to its
profitability, Cogent chief executive Dave Schaeffer said at an
investor conference Monday.
"The combination of the management's expectation of valuation
coupled with (its) negative cash flow quickly led us to conclude
that we were not going to be an active bidder on that asset,"
Schaeffer said at the conference, according to
telecommunications trade publication Telephony.
Qwest is widely reported to be offering the long-haul network
for sale, although Qwest has never confirmed the reports.
Qwest is reported to be seeking $2 billion to $3 billion for the