Qwest Says SEC to Start Formal Review

Qwest Communications International Inc. said the Securities and Exchange Commission will launch a formal review of the telephone and data services company, covering the same accounting issues as the agency’s previously announced informal review.

Denver-based Qwest said it had received in March an informal inquiry from the SEC regarding its accounting policies, practices and procedures in 2000 and 2001.

On Monday, the company said the SEC staff recommended action against the carrier for excluding certain information, most related to its acquisition of US West Inc., in a January 2001 earnings release. Qwest, the No.4 U.S. local telephone company, said it is cooperating fully with the SEC and will continue to do so.

Qwest shares closed at $7.26, down 29 cents, on the NYSE. Qwest made the announcement after the markets closed.