US West Threatens Suit if Merger Derails

By Sushuma on 2000-03-06 10:58:34

(InternetWeek)-US West said it would sue merger partner Qwest Communications for damages if the company doesn't follow through with its plan to buy the telephone company for $40 billion.?In a letter sent by Mark Roellig, US West general counsel, the telco said it would seek damages--in the event of any dissolution of the merger--far in excess of the $800 million breakup fee attached to the original merger agreement.?"We are extremely concerned that discussions [with Deutsche Telekom] are ongoing with no information being provided to us," the letter said.?"Such discussions would appear to be a clear violation of our merger agreement." US West said it would make no further comment on the letter; Qwest declined to comment as well.?US West's letter capped a week in which relations between the two companies sharply deteriorated.?Earlier, US West chairman Sol Trujillo said he would leave the company once the merger was completed, citing differences in strategy and staffing.?Then, even as Qwest named the management team expected to lead a combined company, Qwest CEO Joseph Nacchio seemed to want to distance his company from regulatory problems US West is facing.?Qwest said it would have no further statements to make about Nacchio's comments made to The Denver Post, in which the executive said any difficulties US West is facing regarding its service levels "were US West's problems" and not a Qwest issue.?More...

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