Qwest invests $2 billion for its own stock
Jeff Smith, Rocky Mountain News
Wednesday, October 4, 2006
Qwest Communications announced plans Wednesday to buy back as much as $2 billion of its common stock over the next two years rather than to re-institute a dividend.
Telecommunications analyst Donna Jaegers of Janco Partners in Greenwood Village said the buyback plan, which is designed to increase value for existing shareholders, was bigger than she was expecting and gives the company flexibility in terms of timing. But she said it could come as a little bit of a disappointment to those who were looking for a dividend, or a combination of a stock repurchase and dividend.
Qwest Chief Executive Dick Notebaert said in a statement that the company intends to "fully achieve" the buyback plan over the next two years, "while reviewing, on a regular basis, opportunities to enhance shareholder returns."
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