Qwest's stock is buzzing on rumors that Verizon may tender an offer for the company or that it could be a takeover target by someone else. Industry observers have been watching what Verizon will do in light of AT&T's $67 billion takeover of BellSouth to regain parity on both the landline and wireless sides. That means acquiring a company like Qwest adds a bigger landline footprint while buying out Vodafone for Verizon Wireless gives Verizon sole ownership of the wireless business. Other investors are hoping private-equity and other cash-rich firms might move in to bid for Qwest, like they did for Vodafone's struggling Japanese unit. Still, as we mentioned before, Qwest is not that attractive, especially since it doesn't own any wireless assets.
For more about Qwest as a potential takeover target:
- check out this piece from Light Reading
- take a look at this article from The Wall Street Journal (sub. req)