Yellow-pages deals red hot as telecom industry regroups; Print staple becomes symbol of stability.(News)

Advertising Age, January, 2003

Byline: BRADLEY JOHNSON

The biggest deal of 2001 was America Online's $147 billion takeover of Time Warner. Last year's top media deal? Qwest Communications' sale of its yellow pages for $7 billion to two private-equity firms.

Qwest wasn't alone in dealing yellow pages. R.H. Donnelley Corp. is buying Sprint Corp.'s phone books for $2.2 billion. British publisher Yell Group paid $600 million to buy the U.S. directories of bankrupt telecom McLeodUSA. Kohlberg Kravis Roberts & Co. is getting into the act with a buyout of Bell Canada's directories. A Deutsche Bank analyst who follows the category said it's conceivable remaining Baby Bells will sell some of their yellow pages, putting more books in play.

What's the big deal?

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