Yellow pages sold for US$7.05b

DENVER, Colorado : Embattled telecoms group Qwest Communications, struggling to lighten a heavy debt burden, announced Tuesday it had struck a deal to sell its yellow pages business for US$7.05 billion to a newly formed consortium.

Qwest shares shot up 31.70 percent on the news.

The group said its directories publishing business QwestDex would be sold to a new entity formed by two private equity firms: The Carlyle Group, and Welsh, Carson, Anderson and Stowe.

Qwest is on a selling spree as it seeks to slash a mountain of short-and long-term debts amounting to more than $25 billion, revealed in company accounts this month.

"As we promised, we are moving aggressively to take the necessary steps to ensure the long-term success of the company and our ability to continue to provide world-class services to our customers," Qwest chairman and chief executive Richard Notebaert said in a statement.

"The sale of QwestDex is a significant part of our plan to deliver and strengthen our balance sheet and will allow us to focus on maximizing the profitability of our core operations." --AFP