...otherwise private equity firms might not be interested in buying you out. That seems to be the lesson here:
In August 2002, shares of Qwest Communications International were trading around $1.24 a share, and the entire company – which sells phone and Internet service across the Midwest and Rockies – was valued at just $2.6 billion. Today, the company’s stock is trading at $10.16 a share, for a total market cap of $18.8 billion, a 719% increase.
So hurrah for Notebaert.
Or, um, not.
Why not?
While Qwest’s name has come up repeatedly at Wall Street banks, investment bankers all shake their heads in amazement. The company’s simply too richly valued for a buyout right now, they say.
Which begs the question: Did Notebaert do badly for his shareholders by doing too well in restoring the company? Might a lesser-valued company actually capture more value by becoming LBO bait?
I'm sorry, but this is the dumbest thing I have ever read in my life. The stock is up 720% in five years, and shareholders are mad because they can't get a 30% one day pop tommorow, and potentially give up any future upside?
Posted by: ian | June 12, 2007 at 10:33 AM
In your analysis about Qwest today, you forgot to mention that the financial situation of the Company improved dramatically from 2002.Additionally, Qwest was selected a few weeks ago for a 60 billion contract with the Federal Government. The price changed in relation with the new scenario. I think that now the Company quotation is totally undervalued.
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