Qwest to Seek Damages for Canceled Contracts

Qwest Communications International Inc., a long-distance phone and data services company, said it will seek breach-of-contract damages after Citizens Communications Co. canceled a $1.65-billion purchase of phone lines from Qwest.

Citizens, which has been selling utilities and expanding its telephone service, repeatedly postponed completing the purchase “for no legitimate reasons,” the Denver-based company charged. Qwest said it filed for arbitration with the American Arbitration Assn. but declined to specify how much it’s seeking in damages.

Stamford, Conn.-based Citizens said it told state utility regulators that it terminated the purchase because Qwest “materially breached certain representations and warranties” related to the lines Citizens agreed to buy.

Citizens Communications shares rose 6 cents to close at $12.68, while Denver-based Qwest shares fell $1.45 to $28.55, both on the NYSE.