Merger Ends Qwest, Global Crossing Battle

Qwest Communications International Inc. and Global Crossing Ltd. yesterday announced separate agreements to end a five-week long takeover battle for two U.S. telephone carriers.

Denver, Colorado-based U.S. West Inc. agreed to a merger with Qwest in a stock swap valued at US$34.7 billion [B], or $69 per share, the companies said. The combined entity, which will retain Qwest's name, will have a market capitalization of $65 billion [B] and pro forma revenues of $18.5 billion [B] in 2000, Qwest said in a statement issued yesterday.

Global Crossing, meanwhile, announced it will proceed with its plan to acquire long-distance provider Frontier Corp., Global Crossing's management said in a letter to shareholders dated yesterday. The deal is valued at about $11 billion [B], or $63 per share.

The deals end a battle between Qwest and Global Crossing over the two telephone companies. Bermuda-based Global Crossing was in the process of acquiring both U.S. West and Frontier when Qwest last month announced unsolicited bids to acquire the companies.

Qwest said yesterday it has withdrawn its bid for Frontier, while Global Crossing has agreed to reduce a penalty placed on U.S. West for terminating its merger agreement, the companies said.

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