AUSWR
The Association of U S West Retirees
 

 

 

Anschutz sells Qwest options
The founder's family trust makes a deal with an undisclosed buyer to sell options on 10 million shares at $1.30 each. The strike price is $7.50.
By Beth Potter and Aldo Svaldi, Staff Writers Denver Post
Wednesday, June 7, 2006

The Anschutz Family Investment Co. has sold call options for 10 million shares of Qwest stock to an undisclosed buyer or buyers for $1.30 apiece, gaining $13 million, according to a Securities and Exchange Commission document filed Tuesday.

The option holders can acquire those shares from the Anschutz trust at a strike price of $7.50 apiece on or before Jan. 18, 2008.

The Anschutz family trust's call-option sale strategy could be as simple as taking advantage of Qwest's recent stock run-up, said Jerry Paul, a portfolio manager for QCM Absolute Fund in Greenwood Village.

Qwest stock has more than doubled in the last year, from $3.45 to $7.63 Tuesday.

Similar options on Qwest stock were trading for $1.65 on Tuesday.

Philip Anschutz is Qwest's largest shareholder, controlling 300.4 million shares, or 15.9 percent of the company's stock, according to Bloomberg.  The family trust's Qwest holdings are separate from that.

Anschutz served on the board of Qwest, the Denver-based phone company, until its annual meeting in late May.

The Anschutz family trust is managed by the Denver-based Anschutz Co., which is owned by Anschutz.

"This shouldn't be seen as a sell-off," said Jim Monaghan, an Anschutz spokesman, who said the trust is using an investment strategy that plays out over the next two years.

Staff writer Beth Potter can be reached at 303-820-1503 or bpotter@denverpost.com.

http://www.denverpost.com/business/ci_3907214