sells Qwest stock
By Beth Potter, Staff Writer
Tuesday, July 11, 2006
Anschutz Co., owned by
Colorado financier Philip Anschutz, has entered into a
forward sale contract on 45 million shares of Qwest stock,
according to a Securities and Exchange Commission filing.
Under the forward sale, an undisclosed buyer will pay
Anschutz $295 million Thursday for those shares in a
prepayment. If the stock rises in the future, Anschutz will
end up sharing the gains with the buyer. Such a sale is
also a hedge against the stock price dropping and provides
A forward sale is a way for a large stockholder to make
money on a stock and still maintain voting rights until the
shares are turned over to the buyer. Portions of the stock
are scheduled to be delivered to the buyer on three dates in
2009 and 2010.
The 45 million shares of stock were worth $361 million on
Monday when the stock traded at $8.03 a share.
The sale contract is the largest yet of recent
Anschutz-related Qwest stock dealings. Anschutz Co. or an
Anschutz family trust have entered into forward sales and
options contracts on at least 27 million shares of Qwest
stock in recent weeks, before Monday's announcement.
Anschutz, the founder of Qwest and a longtime director, is
the largest Qwest shareholder. He did not run for
reelection to the Qwest board in May.
According to one analyst, Anschutz may be taking advantage
of the recent rise in Qwest stock to take profits. Qwest's
stock has more than doubled in the last year from $3.62.
Anschutz spokesman Jim Monaghan declined to comment.
Staff writer Beth Potter
can be reached at 303-820-1503 or firstname.lastname@example.org.