Nacchio: Robin Szeliga, Part III

March 2007

Nacchio Live Blog: More Robin Szeliga. [Note: This is not a transcript. It is my notes of the proceedings as typed as fast as I can. Spelling errors will be corrected this evening. I will update every 15 minutes or so, so please either bookmark and check back or refresh your screen every so often for the latest updates.] 3:oo p,m She got a phone call at her parents home in PA on 6/18/01 from Nacchio about a Wall St Journal article. Nacchio, Mohebbi, Tempest, Wolfe and others were on the call. Gist of the call was the fact that Qwest's stock price was taking a hit after WSJ article. They discussed whether to hold an analysts call the next day to refute points in WSJ article. The article was of concern because it was creating pressure on the stock price because it suggested Qwest's only product was fiberoptic. Nacchio said he wanted to confirm the guidance for 2001. They were two weeks away from the end of the quarter and she was not confident that they were going to make their numbers for the quarter. So she cautioned Nacchio. They had a lengthy argument until 2 or 3 am. He told her to go to sleep and she'll find out what he's going to do in the morning. No details about their "argument" are inquired into by the prosecutor. On August 15, she and others presented information to Nacchio to convince him to take down the numbers. He said he wanted to review the information and confirm it with the individual business units. Sept 10, 2001 press release. She reviewed it and made comments to Qwest's press person. She thinks Nacchio did too. In the release, Qwest lowered its guidance by about a billion dollars to $20.5 billion. How did the 20.5 billion compare to 2001 budget thaat she set with Nacchio in the fall of 2001? She had told Nacchio there was about a billion dollars of risk. Recess. Back with new thread for cross examination in 15 minutes. 3:10 pm

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