Qwest Unit Silent Auction Apparently Attracting Low BidsQwest Unit Silent Auction Apparently Attracting Low Bids

Any hopes that Qwest Communications can get relief from its pressing debt load by selling off a major piece of its nationwide long-distance and data network are apparently dashed, according to media reports.

The Denver company doesn't comment on the reports that began in April that its long-distance business is for sale. The initial price tag bandied about was between $2 billion and $3 billion, but the latest reports from unconfirmed investment banking sources say that bids never reached $1 billion.

Qwest's new CEO and chairman, Edward Mueller, has guided the former Baby Bell to new profits, but the company's $13 billion-plus debt load has acted as a drag on its performance. The company has long lived in the shadow of the nation's two largest telecom companies -- AT&T and Verizon Communications. In addition to its fiber optic-based nationwide network, Qwest has a valuable piece of the of the federal government's Networx program.

The company has been plagued by a series of financial scandals that sent former CEO Joe Nacchio to prison. In addition, Qwest doesn't have its own mobile phone unit, as it has to share wireless profits with its Verizon Wireless provider.

Investment banking sources have cited a long list of potential buyers for Qwest's long-distance unit, including Level 3 Communications, XO Communications, TW Telecom, Century Tel, Frontier Communications, and Windstream Communications. None has ever commented publically on the rumors and the auction, assuming there was one, now appears to be wishful thinking.

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