Qwest CEO announces his plans to retire

DENVER — Richard Notebaert, who pulled a troubled Qwest Communications from the brink of bankruptcy amid a multibillion-dollar accounting scandal, announced plans Monday to retire as chairman and chief executive officer. Qwest shares fell 8 percent.

Notebaert, 59, said he will leave the Denver-based telecommunications company after the board of directors selects a replacement, although no timetable has been established. He is the third top-ranking executive to announce plans to leave Qwest this year.

"The time has come for me to spend more time with family and focus on other commitments," Notebaert said in a written statement.

Addressing a conference in New York later Monday, Notebaert said, "I would not walk away if I didn't feel the legacy that I left behind was very strong and that the platform that we put in place was one that share owners could continue to benefit and be rewarded by participating in."

He said the company is profitable and added, "I expect that to continue to improve. And so I feel very good about where we are — very good about it."

Notebaert was tapped to head Qwest Communications International Inc., the main telephone service provider in 14 mostly Western states, including Utah, after ex-CEO Joe Nacchio resigned in June 2002 amid the scandal that forced the company to restate at least $2.2 billion in revenue.

In the past five years, Notebaert and his team toiled to turn the company around and drew intense national interest with a bitter bidding war for MCI Inc. that eventually was won by Verizon Communications Inc.

Last year, Qwest posted its first operating profit since acquiring the former Baby Bell US WEST Inc. in 2000.

Notebaert's planned departure comes as Qwest is finding its way in the aggressively competitive field of telephone, Internet and television service. It resells both wireless and satellite television services to offer bundled packages to customers.

One of its toughest competitors is Comcast Corp., which covers a good portion of Qwest's 14-state region.

Notebaert helped cut the company's costs and increased revenue without forcing it into bankruptcy, Janco Partners telecommunications analyst Donna Jaegers said.

"He did a good job, but this is not a good time to step down," she said. "Unfortunately, Qwest is at a very strategic juncture where they have to start getting better returns out of their out-of-region business."

The board faces a difficult task in finding a replacement, Jaegers said.