US West Asks Qwest to Clarify Merger Status

US West Inc. Friday demanded that its merger partner, Qwest Communications International Inc., disclose the status of talks with rumored bidder Deutsche Telekom, saying it will hold Qwest responsible for damages to their $36-billion merger agreement. In a letter sent to Qwest’s general counsel, US West said, “We are extremely concerned that these discussions [with Deutsche Telekom] are ongoing with no information being provided to us. Such discussions would appear to be a clear violation of our merger agreement.” Deutsche Telekom has been in talks to acquire Qwest and US West, both based in Denver, and Qwest’s largest shareholder, Philip Anschutz, is believed to support a takeover by the German company, according to media reports. US West was not informed of the initial discussions between Qwest and Deutsche Telekom, the reports said. US West’s stock gained $3.13 to close at $75.13, and Qwest added $4 to close at $64, both on the New York Stock Exchange.