Qwest trade with Enron questioned
A telecommunications deal last fall between Enron Corp. and Qwest Communications International is being scrutinized by a federal task force investigating Enron, sources said.
The deal involved a trade between Enron and Qwest of fiber optic network capacity and other assets that the companies valued at more than $500 million in September, at a time when both were struggling to meet revenue expectations.
Federal investigators are looking at whether the value of the traded assets was inflated artificially to allow both to claim revenue increases on third quarter filings. [Houston Chronicle]
Prior to the merger with Qwest, USWest was always a company with a complex. It was a company that simply never performed, not like the other RBOCs, the old children of ATT. USWest was the ugly stepchild, always dreaming of hitting the big time. It was that attitude that led to CECO and the years of additional oversight by the judge who handled the break-up of ATT. Then they got their wish and sold out to the highest bid, Qwest. The loser was Global Crossing. The accounting firm for Qwest...Arthur Andersen...go figure...mj
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