Qwest dividend may be on way
It would be the first for the firm since 2002. CEO Mueller
is set to disclose his strategic plan soon.
By Andy Vuong
Wednesday, December 12, 2007
Qwest chief executive Ed Mueller is expected to disclose by
Monday his much-anticipated strategic plan, which should include
the announcement of a dividend, according to a Wall Street
In a research note sent to investors Tuesday, JP Morgan analyst
Jonathan Chaplin said he expects Qwest to initiate a dividend of
at least 29 cents a share.
It would mark the first time since 2002 that Qwest has issued a
Mueller is scheduled to meet with Qwest's board of directors
Thursday to discuss and receive approval for the strategic plan,
Chaplin said in the note: "We expect the company to issue
a press release on Thursday of this week at the earliest or next
Monday at the latest."
Qwest spokeswoman Diane Reberger declined to comment on
Analysts had anticipated a dividend announcement during the
Denver-based company's third-quarter earnings call in October.
Mueller told The Denver Post in November that he wanted to
complete the strategic review before disclosing what the company
would do with its cash.
As of Sept. 30, Qwest had about $1.1 billion in cash.
Mueller, who succeeded former Qwest CEO Dick Notebaert in
August, said in the interview the he would announce a plan by
the end of the year.
Chaplin expects Mueller to outline Qwest's revenue-growth
expectations and capital expenditures for 2008.
Qwest stock closed Tuesday at $7.23 a share, up 8 cents.
Andy Vuong: 303-954-1209 or