KPNQwest Expands

Qwest increases stake in KPNQwest; KPNQwest to acquire Global TeleSystems

October 19, 2001

1 Min Read

DENVER -- Qwest Communications International Inc. (NYSE: Q), the broadband communications company, today announced an agreement with Koninklijke KPN N.V., the Dutch telecommunications company, for Qwest to purchase from KPN approximately 14 million shares of KPNQwest N.V. for $4.58 per share and Anschutz Company, Qwest's principal shareowner, to purchase an additional six million KPNQwest shares at the same price. Separately, KPNQwest announced plans for a major European expansion with the acquisition of Global TeleSystems, Inc.'s (GTS) Ebone and Central Europe businesses for approximately $580 million (645 million euro), including the assumption of debt. At the completion of the acquisition, KPNQwest will have a $450 million (500 million euro) credit facility to fully fund the combined company until it becomes free cash flow positive in the fourth quarter of 2003. "Owning a larger stake in KPNQwest is a well-timed strategic opportunity as KPNQwest significantly expands its pan-European leadership position; fully funds its business plan after a major acquisition, and accelerates free cash flow," said Qwest Chairman and CEO Joseph P. Nacchio, who also serves as chairman of the KPNQwest board.KPNQwest NV

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