Qwest, the Denver-based company that provides local phone service in Iowa, is in financial trouble, and an Iowa State University professor says Sunday’s exit of Qwest’s controversial C-E-O may not be enough to save the company.I-S-U management professor David Hunger believes Qwest will be bought by another company, soon, at a “fire sale” price.If Qwest goes into bankruptcy, Hunger says another company can take ’em over and get the debt written off, then that new owner will be able to make a profit. Qwest is saddled with 26-million dollars in debt, and Hunger says if Qwest remains in business, it’ll be worse for consumers.Hunger says Qwest will be forced to make cutbacks, which will reduce service. Or, the company will dramatically raise rates to try to pay off its debt. Qwest’s stock price fell to four-dollars-a-share, from a one-time high of 64-dollars. The S-E-C is also investigating the company’s accounting practices. Qwest is now led by Richard Notebaert, the former chairman of Ameritech, who replaced Joseph Nacchio yesterday.
