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Qwest Skirted Bankruptcy, But "Tough Road' Ahead.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| February 03, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: REINHARDT KRAUSE

Richard Notebaert has gotten high marks on Wall Street since taking over as Qwest Communications International Inc.'s chief executive in mid-June 2002.

But the hybrid local/long-distance phone company has plenty of challenges ahead and seems an unlikely takeover target.

"He's done a good job fixing up a mess in a short period of time. Give him credit," said James Andrews, analyst at consultancy Adventis Andrews. "But to sell, he has to build long-term value. He's got a tough road."

Notebaert steered Qwest away from bankruptcy by slashing long-term debt. He cleaned up its accounting amid federal probes.

Having avoided Chapter 11, Qwest recently bid for assets of distressed firms, including Allegiance Telecom. The new assets helped Qwest expand into new regions, especially serving business customers.

And Qwest is on the offensive in other ways. It's readying voice over Internet protocol products for consumers.

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