November 21, 2003 — (WEB HOST INDUSTRY REVIEW) — Telecommunications carrier Qwest (qwest.com) is offering $350 million in cash and assumed debt for Dallas-based Allegiance Telecom (algx.com), a provider of facilities-based telecommunications, according to a report published on internetnews.com.
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internetnews.com reported that talks were in the early stages and that neither company had made any comment.
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The potential acquisition could bring Qwest new corporate customers for Internet access, colocation and Web hosting and help it compete with larger carriers such as AT&T and MCI.
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Allegiance Telecom, who is saddled with over $1 billion in debt, filed for chapter 11 bankruptcy protection in May and must have creditors and the courts approve any transaction.
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According to Internetnews.com, there are two other potential suitors who have shown interest in the troubled carrier.
