What is the connection between Qwest and the Carlyle Group?

[jjmalonejr]

Anyone know? I've heard it alluded to, but I don't know what the link is.

[TomInTib]

1. Carlyle paid $7.1 billion for Qwestdex, directory assistance.

[jjmalonejr]

4. So, Qwest needed cash...

...and Carlyle Group came along and purchased a struggling subsidiary from them.

Got it.

[Drum]

2. Good thread on this last night...I'll try to find. nt

[TomInTib]

3. Here..

from my post yesterday:

http://search.yahoo.com/search?p=%27carlyle+group%27%2C%27directory+assistance%27&sm=Yahoo%21+Search&toggle=1&ei=UTF-8&xargs=0&pstart=1&fr=FP-tab-web-t&b=11

[Drum]

5. found this:

#7 reply has a lotta info.
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=364&topic_id=1174670

[Gman]

6. Carlyle bought Quest's Yellow Pages subsidiary

a few years ago. Yellow Pages is a cash cow for phone companies. Of course it was Joe Nachio that sold it. And there isn't anything starting from when he was with AT&T many years ago until now that he hasn't touched that hasn't turned to shit. WITH THE LONE EXCEPTION of refusing to give the NSA Quest call records. Probably because he was being investigated at the time and had no desire to cooperate with any part of the US government. IF Nachio thought giving the NSA the requested records would have gotten him something, he would have done it in a second.

[low_phreaq]

7. Carlyle has been buying up directory assistance companies

giving them access to lots of info. Here's a thread from yesterday:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=1168887&mesg_id=1168887

[antigop]

8. FYI -- FCC approval for Carlyle to acquire Verizon Hawaii

http://carlylegroup.com/eng/fund/l5fundnews-2858.html

(I know you asked about Qwest, but the Verizon connection is "interesting".)

[low_phreaq]

9. Also, current Qwest CEO is a ** committee appointee!

Not a Carlyle link, but Qwest's current CEO, Richard Notebaert, was appointed by ** to the President’s National Security Telecommunications Advisory Committee!

Thread from last night:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=1175891&mesg_id=1175891

[leveymg]

10. Here's an interesting detail - QW was going to merge w/Global Crossing

Background note: Next to the Enron and MCI scandals, the collapse of Global Crossing is perhaps the most notorious corporate rip off in recent history. While the details are murky, it appears that Global Crossing tried to corner the international and long distance carrier markets in the same way that Enron did electricity and natural gas. The manipulations of Global Crossing have also been tied to PRC interests. Concerns about links between GCs principal owner, Li ka-Shing, and the Chinese military led to cancellation of a $400 million defense contract to provide "advanced wide area network Internet service to the Defense Research and Engineering Network , which links more than 6,000 scientists and engineers at defense laboratories, test centers, universities and industry sites." http://www.hereinreality.com/likashing.html

A few details:

1999 - Qwest and Global Crossing plans to merge fall through as Qwest moves to purchase "Baby Bell" US West. http://www.webbconsult.com/1990.html

###

http://www.internetnews.com/fina-news/article.php/5_972081
February 11, 2002
SEC's Global Crossing Probe Spreads to Qwest
By Thor Olavsrud

The Securities and Exchange Commission (SEC) continues to probe international voice and data carrier Global Crossing Ltd. over possible accounting improprieties, and it expanded the scope of its investigation Monday when it subpoenaed documents from Qwest Communications International (Quote, Chart).

Qwest Monday said the SEC requested the documents in connection with its investigation of Global Crossing and added that it intends to cooperate fully with the SEC.

Qwest's connection to the SEC's investigation is not clear, and Qwest could not immediately be reached for comment. However, the connection may be found in Qwest's successful bid to acquire regional Bell operating company U S West. In 1999, U S West agreed to be acquired by Global Crossing, but then received a rival offer from Qwest. U S West then backed out of its transaction with Global Crossing, invoking a clause in the deal under which U S West was required to buy 10 percent of Global Crossing's shares at a slight premium.

According to a report in The New York Times, Global Crossing founder Gary Winnick made out very well from the deal's collapse. The Times reported that Winnick held 100 million shares, options and warrants when the deal went under. He sold 5.6 percent of his stake to U S West at the company's offer price of $62.75 a share. Winnick netted $350 million in the transaction.

####

http://www.globalcrossing.com/xml/news/1999/september/6.xml
Global Crossing Becomes New Partner in Joint Venture with China Telecom; Co-Owners of SBSS Submarine Cable Company

Global Crossing acquires 49% share in SBSS from Cable & Wireless & Hong Kong Telecom.
China Telecom, Global Crossing's partner in SBSS, is the principal provider of national and international telecommunications services in China.
SBSS has history of steady growth and annual revenue in excess of US$ 50 million.


Hamilton, Bermuda - September 6, 1999 - Global Crossing Ltd. (Nasdaq: GBLX), which is building and operating the world's most advanced global IP-based fiber optic network, today announced that it has signed an agreement with China Telecom to acquire the 49% share of S.B Submarine Systems Company Ltd. (SBSS) that was previously owned by Great Eastern Telecommunications (GET, a Cable & Wireless and Hong Kong Telecom venture).

SBSS was established in 1995. The original partnership between China Telecom and Great Eastern Telecommunications was formed to provide installation and maintenance of submarine cable systems. SBSS owns and operates two cableships and has berths and a cable depot in its base port of Shanghai. The ships have recently been involved in the installation of the China-US cable system, the Northstar cable system, and the maintenance of cables in the Asia Pacific region. It also provides maintenance services to the Yokohama cable maintenance zone. SBSS has grown steadily since its formation and has an annual revenue in excess of US$50 million.