Groups Planning Joint Bid for Qwest Business

A coalition of six private investment groups are planning an initial joint offer of up to $8 billion for Qwest Communications International Inc.’s telephone directory business in a preemptive strike that could significantly narrow the list of potential bidders, sources close to the situation said.

The creation of a such a powerful alliance has caused a stir among some of the other large bidders, which have initiated talks with each other and major financial institutions about forming their own coalitions, sources said.

Denver-based Qwest, which is selling its massive phone-book business to raise additional capital amid a prolonged industry slump, officially put the unit on the auction block two weeks ago, hoping to raise up to $10 billion.