PHOENIX NETWORK INC
SC 13D/A, 1998-02-09
COMMUNICATIONS SERVICES, NEC
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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13D

                    Under the Securities Exchange Act of 1934
                               (Amendment No. 1)*

                              PHOENIX NETWORK, INC.
- --------------------------------------------------------------------------------
                                (Name of Issuer)

                          Common Stock, $.001 par value
                   -------------------------------------------
                         (Title of Class of Securities)

                                    718910102
                               ------------------
                                 (CUSIP Number)

Robert S. Woodruff                              Drake S. Tempest, Esq.
Qwest Communications                            O'Melveny & Myers LLP
  International Inc.                            Citicorp Center
555 Seventeenth Street, Suite 1000              153 East 53rd Street, 54th Floor
Denver, Colorado  80202                         New York, New York  10022-4611
(303) 291-1400                                  (212) 326-2000
- --------------------------------------------------------------------------------

                  (Name, Address and Telephone Number of Person
                Authorized to Receive Notices and Communications)

                                January 29, 1998
             ------------------------------------------------------
             (Date of Event which Requires Filing of this Statement)

         If the filing person has  previously  filed a statement on Schedule 13G
to report the  acquisition  which is the subject of this  Schedule  13D,  and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box
[ ].

- --------
     *   The  remainder  of this cover page shall be filled out for a  reporting
person's  initial  filing on this  form with  respect  to the  subject  class of
securities,  and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.

         The information  required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("ACT") or otherwise  subject to the  liabilities of that section of
the Act but shall be subject to all other  provisions of the Act  (however,  SEE
the NOTES).

CUSIP Number 718910102
             ---------

         Note: Six copies of this statement,  including all exhibits,  should be
filed with the  Commission.  See Rule  13d-1(a) for other parties to whom copies
are to be sent.

                               Page 1 of 12 Pages
<PAGE>

- --------------------------------------------------------------------------------
1        NAME OF REPORTING PERSON
         S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

         Qwest Communications International Inc.

- --------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
                                                                  (a) [X]
                                                                  (b) [ ]
- --------------------------------------------------------------------------------
3        SEC USE ONLY

- --------------------------------------------------------------------------------
4        SOURCE OF FUNDS
         OO

- --------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
         REQUIRED PURSUANT TO ITEM 2(d) or 2(e)                       [ ]

- --------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION
         Delaware

- --------------------------------------------------------------------------------
NUMBER OF                            7        SOLE VOTING POWER
SHARES                                        ----------------------------------
BENEFICIALLY                         8        SHARED VOTING POWER
OWNED BY                                                           7,377,139
EACH REPORT-                                  ----------------------------------
ING PERSON                           9        SOLE DISPOSITIVE POWER
WITH                                          ----------------------------------
                                     10       SHARED DISPOSITIVE POWER
                                              ----------------------------------

- --------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

         7,377,139
- --------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
         EXCLUDES CERTAIN SHARES                                       [ ]
- --------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         20.5%
- --------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON
         CO
- --------------------------------------------------------------------------------

                               Page 2 of 12 Pages
<PAGE>

- --------------------------------------------------------------------------------
1        NAME OF REPORTING PERSON
         S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

         Qwest 1997-5 Acquisition Corp.

- --------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
                                                                  (a) [X]
                                                                  (b) [ ]
- --------------------------------------------------------------------------------
3        SEC USE ONLY

- --------------------------------------------------------------------------------
4        SOURCE OF FUNDS

- --------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
         REQUIRED PURSUANT TO ITEM 2(d) or 2(e)                       [ ]

- --------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION
         Delaware

- --------------------------------------------------------------------------------
NUMBER OF                            7        SOLE VOTING POWER
SHARES                                        ----------------------------------
BENEFICIALLY                         8        SHARED VOTING POWER
OWNED BY                                                           7,377,139
EACH REPORT-                                  ----------------------------------
ING PERSON                           9        SOLE DISPOSITIVE POWER
WITH                                          ----------------------------------
                                     10       SHARED DISPOSITIVE POWER
                                              ----------------------------------

- --------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

         7,377,139
- --------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
         EXCLUDES CERTAIN SHARES                                      [  ]
- --------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         20.5%
- --------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON
         CO
- --------------------------------------------------------------------------------

                               Page 3 of 12 Pages
<PAGE>


- --------------------------------------------------------------------------------
1        NAME OF REPORTING PERSON
         S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

         Anschutz Company

- --------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
                                                                  (a) [X]
                                                                  (b) [ ]
- --------------------------------------------------------------------------------
3        SEC USE ONLY

- --------------------------------------------------------------------------------
4        SOURCE OF FUNDS
         

- --------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
         REQUIRED PURSUANT TO ITEM 2(d) or 2(e)                       [ ]

- --------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION
         Delaware

- --------------------------------------------------------------------------------
NUMBER OF                            7        SOLE VOTING POWER
SHARES                                        ----------------------------------
BENEFICIALLY                         8        SHARED VOTING POWER
OWNED BY                                                           7,377,139
EACH REPORT-                                  ----------------------------------
ING PERSON                           9        SOLE DISPOSITIVE POWER
WITH                                          ----------------------------------
                                     10       SHARED DISPOSITIVE POWER
                                              ----------------------------------

- --------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

         7,377,139
- --------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
         EXCLUDES CERTAIN SHARES                                      [  ]
- --------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         20.5%
- --------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON
         CO
- --------------------------------------------------------------------------------

                               Page 4 of 12 Pages
<PAGE>

- --------------------------------------------------------------------------------
1        NAME OF REPORTING PERSON
         S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

         Anschutz Family Investment Company LLC

- --------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
                                                                  (a) [X]
                                                                  (b) [ ]
- --------------------------------------------------------------------------------
3        SEC USE ONLY

- --------------------------------------------------------------------------------
4        SOURCE OF FUNDS

- --------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
         REQUIRED PURSUANT TO ITEM 2(d) or 2(e)                       [ ]

- --------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION
         Colorado

- --------------------------------------------------------------------------------
NUMBER OF                            7        SOLE VOTING POWER
SHARES                                        ----------------------------------
BENEFICIALLY                         8        SHARED VOTING POWER
OWNED BY                                                           7,377,139
EACH REPORT-                                  ----------------------------------
ING PERSON                           9        SOLE DISPOSITIVE POWER
WITH                                          ----------------------------------
                                     10       SHARED DISPOSITIVE POWER
                                              ----------------------------------

- --------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

         7,377,139
- --------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
         EXCLUDES CERTAIN SHARES                                       [ ]
- --------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         20.5%
- --------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON
         OO
- --------------------------------------------------------------------------------

                               Page 5 of 12 Pages
<PAGE>

- --------------------------------------------------------------------------------
1        NAME OF REPORTING PERSON
         S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

         Philip F. Anschutz

- --------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
                                                                  (a) [X]
                                                                  (b) [ ]
- --------------------------------------------------------------------------------
3        SEC USE ONLY

- --------------------------------------------------------------------------------
4        SOURCE OF FUNDS

- --------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
         REQUIRED PURSUANT TO ITEM 2(d) or 2(e)                       [ ]

- --------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION
         United States of America

- --------------------------------------------------------------------------------
NUMBER OF                            7        SOLE VOTING POWER
SHARES                                        ----------------------------------
BENEFICIALLY                         8        SHARED VOTING POWER
OWNED BY                                                           7,377,139
EACH REPORT-                                  ----------------------------------
ING PERSON                           9        SOLE DISPOSITIVE POWER
WITH                                          ----------------------------------
                                     10       SHARED DISPOSITIVE POWER
                                              ----------------------------------

- --------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

         7,377,139
- --------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
         EXCLUDES CERTAIN SHARES                                       [ ]
- --------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         20.5%
- --------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON
         IN
- --------------------------------------------------------------------------------


                               Page 6 of 12 Pages

<PAGE>


         This  Amendment  No. 1 to the Schedule 13D filed on January 12, 1998 on
behalf  of Qwest  Communications  International  Inc.,  a  Delaware  corporation
("QWEST"),  Qwest  1997-5  Acquisition  Corp.,  a Delaware  corporation  ("QWEST
SUBSIDIARY"),  Anschutz  Company,  a Delaware  corporation  ("ANSCO"),  Anschutz
Family Investment Company LLC, a Colorado limited liability company  ("ANSLLC"),
and  Philip F.  Anschutz  ("ANSCHUTZ"),  which  relates to the shares of Company
Common Stock (as defined  below),  amends Items 4, 5, 6 and 7 of the Schedule D.
Unless otherwise  indicated,  all capitalized terms used not defined herein have
the same meanings as set forth in the Schedule 13D.

ITEM 3.  PURPOSE OF TRANSACTION

         The  information  previously  furnished  in  response  to this  item is
amended to read as follows:

         On January 6, 1998, Phoenix Network,  Inc., a Delaware corporation (the
"COMPANY"),  Qwest and Qwest Subsidiary entered into a definitive  Agreement and
Plan of Merger dated as of December 31, 1997. On January 29, 1998,  the Company,
Qwest and Qwest  Subsidiary  amended and  restated  such  Agreement  and Plan of
Merger in its entirety  pursuant to the Amended and Restated  Agreement and Plan
of Merger dated as of December 31, 1997 (the  "MERGER  AGREEMENT"),  in order to
(i) delete  certain  references to the shares of Series I Convertible  Preferred
Stock,  par  value  $.001  per  share,  of the  Company,  all of which  had been
converted into shares of common stock, par value $.001 per share, of the Company
("COMPANY  COMMON  STOCK"),  pursuant to their terms,  and certain  requirements
relating thereto,  (ii) reflect the two-for-one stock split announced on January
20,  1998 by Qwest's  Board of  Directors,  payable on  February  24,  1998 as a
dividend to the holders of record of shares of common stock,  par value $.01 per
share,  of Qwest ("QWEST COMMON  STOCK"),  on February 2, 1998 (the "QWEST STOCK
SPLIT")  and (iii)  clarify  the terms of the Merger  Consideration  (as defined
below).  The Merger  Agreement  provides  for a merger (the  "MERGER")  of Qwest
Subsidiary  with and into the  Company  with the  Company  being  the  surviving
corporation (the "SURVIVING CORPORATION"). The Merger will result in the Company
becoming a wholly-owned  subsidiary of Qwest at the time that the Merger becomes
effective under  applicable laws (the "EFFECTIVE  TIME").  The Company and Qwest
intend  that  the  Merger   qualify  for  federal   income  tax  purposes  as  a
reorganization within the meaning of Section 368(a) of the Internal Revenue Code
of 1986, as amended (the "CODE").

         A copy of the Merger  Agreement has been filed with the  Securities and
Exchange  Commission  (the  "COMMISSION")  by the Company as Exhibit 99.1 to the
Current Report on Form 8-K


                               Page 7 of 12 Pages

<PAGE>

of  the  Company  dated  February  9,  1998.  The  Merger  Agreement  is  hereby
incorporated  herein by  reference as Exhibit 1. The  description  of the Merger
Agreement is qualified by reference to the Merger Agreement  incorporated herein
by reference.  All references to Qwest Common Stock, unless otherwise indicated,
shall be deemed to refer to Qwest Common Stock after giving  effect to the Qwest
Stock Split.

         The Merger  Agreement  provides for the merger of Qwest Subsidiary with
and into the Company, pursuant to which all outstanding shares of Company Common
Stock  will be  acquired  for (i) that  number of shares of Qwest  Common  Stock
having an  aggregate  market  value equal to $28.5  million,  subject to certain
adjustments and limitations  described below, which is referred to as the "STOCK
CONSIDERATION,"  and (ii) certain cash  consideration,  if any, payable promptly
following  the  Contingent  Cash  Consideration  Date (as  defined  below) in an
aggregate maximum amount of $4.0 million in cash, contingent upon the outcome of
certain litigation described below, plus interest at the rate of 7.0% per annum,
compounded  annually,  from the date of the closing of the Merger (the  "CLOSING
DATE") to, but  excluding,  the Contingent  Cash  Consideration  Date,  which is
referred to as the "CONTINGENT CASH  CONSIDERATION." The Stock Consideration and
the Contingent  Cash  Consideration  are  collectively  referred to below as the
"MERGER CONSIDERATION." The Merger Consideration will be paid to persons who are
the record  holders of Company  Common Stock  immediately  prior to be Effective
Time of the Merger.

         STOCK  CONSIDERATION.  The Stock Consideration to be issued by Qwest in
the Merger will be determined by dividing (i) the quotient  obtained by dividing
the Acquisition  Value (as defined below) by the Effective Time Adjusted Average
Market Price (as defined below) by (ii) the Aggregate Number (as defined below).

         CONTINGENT CASH CONSIDERATION.  The Contingent Cash  Consideration,  if
any,  to be paid by  Qwest  in  cash  promptly  following  the  Contingent  Cash
Consideration  Date  will be  determined  by  dividing  (i)  the  sum of  (1)(A)
$4,000,000  minus (B) the LDDS Liability (as defined below) plus (C) any amounts
recovered by any of Qwest and its  subsidiaries on or before the Contingent Cash
Consideration  Date  under  the Van  Essen  Indemnification  and  Hold  Harmless
Agreement (as defined in the Merger Agreement) (net of all out-of-pocket  costs,
fees and expenses,  including, without limitation, the fees and disbursements of
counsel and the expenses of litigation,  incurred in collecting such amounts, in
each case to the extent not reimbursed pursuant to the Van Essen Indemnification
and Hold  Harmless  Agreement)  plus (2)  interest on the amount  determined  in
accordance with the


                               Page 8 of 12 Pages

<PAGE>



preceding clause (1) at a rate of 7% per annum,  compounded  annually,  from the
Closing Date to, but excluding,  the Contingent Cash  Consideration Date by (ii)
the Aggregate  Number;  provided that, if there has not occurred a settlement or
other final,  nonappealable  resolution of the litigation styled  LDDS/WorldCom,
Inc. and  Dial-Net,  Inc. v.  Automated  Communication,  Inc. and Judy Van Essen
Kenyon, C.A. No. 3:93- CV-463 (WS) (U.S.D.C. S.D. Miss) (the "LDDS LITIGATION"),
on or prior to the Contingent  Cash  Consideration  Date,  the  Contingent  Cash
Consideration shall be an amount equal to zero dollars ($0).

         DEFINITIONS.  For the purposes of the Merger  Agreement,  the following
terms have the meanings assigned to them below:

         "ACQUISITION  VALUE" means the amount by which (1) $28,500,000  exceeds
         (2) the sum of the aggregate  amount paid and payable by the Company as
         of the Effective Date pursuant to (A) paragraph  A.14.1 of Attachment A
         to the Resale Solutions Switched Services Agreement dated December 1996
         between the Company and Sprint Communications Company L.P. with respect
         to the  difference  between the Company's  Actual Net Usage (as defined
         therein)  and  $12,000,000  during  months  1-12  of the  term  of such
         agreement  and (B)  Section  3 of the  Carrier  Agreement  between  the
         Company  and MCI  Telecommunications  Corporation  with  respect to the
         difference between the Company's Usage Charges (as defined therein) and
         its Annual  Commitment  (as  defined  therein)  during the term of such
         agreement.

         "AGGREGATE NUMBER" means the sum of (a) the number of shares of Company
         Common Stock  outstanding  immediately  prior to the Effective Time and
         (b) the number of shares of Company  Common  Stock that would be issued
         if all  warrants  that are not  cancelled or  otherwise  terminated  in
         accordance  with Section 7.1(j) of the Merger  Agreement were exercised
         in accordance with their terms immediately prior to the Effective Time.
         Section  7.1(j) of the  Merger  Agreement  provides  that all  options,
         warrants and other rights to acquire  capital stock of the Company that
         are  not  exercised  as of the  Effective  Time  will be  cancelled  or
         otherwise  terminated,  except that  warrants to purchase up to 378,333
         shares of Company Common Stock in the aggregate may remain  outstanding
         at the Effective  Time if (a) the Company shall have used  commercially
         reasonable  efforts to cause the  cancellation or other  termination of
         such  warrants and (b) only shares of Qwest Common Stock (and no equity
         securities of the Surviving  Corporation  or any other person) shall be
         issuable upon exercise of such warrants after the Effective Time.


                               Page 9 of 12 Pages

<PAGE>

         "AVERAGE  MARKET  PRICE"  per  share of any  class of stock on any date
         means the  average  of the daily  closing  prices of the shares of such
         stock for the fifteen (15) consecutive  trading days commencing  twenty
         (20) trading days before such date.

         "CONTINGENT CASH CONSIDERATION DATE" means the date that is the earlier
         of (1) the third anniversary of the Closing Date and (2) the date as of
         which Qwest shall have  determined,  in the exercise of its  reasonable
         judgment and after having exercised commercially  reasonable efforts to
         obtain recovery under the Van Essen  Indemnification  and Hold Harmless
         Agreement,  that it is not reasonably likely in the circumstances  that
         Qwest and its subsidiaries shall recover substantial additional amounts
         under such agreement on or before the third  anniversary of the Closing
         Date (net of all  out-of-pocket  costs,  fees and expenses,  including,
         without  limitation,  the fees and  disbursements  of  counsel  and the
         expenses of litigation,  incurred in connection  with  collecting  such
         amounts,  in each case to the  extent  not  reimbursed  or likely to be
         reimbursed pursuant to the Van Essen  Indemnification and Hold Harmless
         Agreement  on or before the third  anniversary  of the  Closing  Date);
         provided  that in no event shall any of Qwest and its  subsidiaries  be
         required to exercise  more than  commercially  reasonable  efforts with
         respect to such recovery.

         "EFFECTIVE  TIME ADJUSTED  AVERAGE  MARKET PRICE" means (i) the Average
         Market Price per share of Qwest Common Stock at the  Effective  Time if
         such Average  Market Price is equal to or greater than $26.25 and equal
         to or less than  $33.75,  (ii) $26.25 if the Average  Market  Price per
         share  of  Qwest  Common  Stock  at the  Effective  Time is equal to or
         greater than $23.75 and less than  $26.25,  (iii) $33.75 if the Average
         Market Price per share of Qwest Common Stock at the  Effective  Time is
         equal to or less than $36.25 and greater than $33.75,  (iv) $26.25 less
         fifty percent (50%) of the amount by which the Average Market Price per
         share of Qwest Common Stock at the  Effective  Time is less than $23.75
         if such Average Market Price is less than $23.75, or (v) the sum of (x)
         $33.75 and (y) fifty  percent  (50%) of the amount by which the Average
         Market Price per share of Qwest Common Stock at the  Effective  Time is
         greater  than  $36.25 if such  Average  Market  Price is  greater  than
         $36.25.

         "LDDS  LIABILITY" means the aggregate amount of any Loss (as defined in
         the Merger Agreement) of any of Qwest and its subsidiaries, (including,
         without  limitation,  any of the Company,  the  Surviving  Corporation,
         Automated


                               Page 10 of 12 Pages

<PAGE>

         Communication,   Inc.,  a  Delaware   corporation  and  a  wholly-owned
         subsidiary of the Company,  and their subsidiaries) in connection with,
         arising  from or  related to (1) the LDDS  Litigation  or (2) any other
         Action (as defined in the Merger Agreement) based, in whole or in part,
         upon facts involved in the LDDS  Litigation,  in each case,  including,
         without  limitation,  any  damages,  or any  fees,  expenses  or  other
         disbursements of counsel.

         Contemporaneously  with the  execution of the Merger  Agreement,  Qwest
entered into voting  agreements  and proxies (each such  agreement and proxy,  a
"VOTING   AGREEMENT")  with  twenty   principal   stockholders  of  the  Company
beneficially  owning  7,377,139  shares  of  the  Company  Common  Stock  in the
aggregate, which shares constitute approximately 20.5% of all outstanding shares
of the Company  Common  Stock on January 16,  1998.  Each such Voting  Agreement
provides  for,  among  other  things,   (a)  the  agreement  of  such  principal
stockholder to cause all shares of the Company Common Stock  beneficially  owned
by such  principal  stockholder  as of the date of the  Merger  Agreement  to be
counted for  purposes of  determining  the  existence of a quorum at the Company
Stockholders Meeting, to cause all such shares to be voted against any action or
agreement that would result in a breach of the Merger Agreement, impede or delay
the  conclusion  of the  Transactions  (as defined in the Merger  Agreement)  or
materially  reduce the benefits of the Transactions to Qwest or Qwest Subsidiary
and to cause all such shares to be voted to approve the Merger Agreement and the
Merger and  against  any  Business  Combination  Transaction  (as defined in the
Merger  Agreement)  other than the Transactions and (b) grant to Qwest and Qwest
Subsidiary of an irrevocable proxy in connection therewith.  Each such principal
stockholder has agreed in its Voting Agreement not to transfer any shares of the
Company Common Stock subject to the Voting Agreement. Each Voting Agreement will
terminate  the day following the  termination  date under the Merger  Agreement;
provided that Qwest may by written notice  delivered from time to time terminate
all or any of its rights under any such Voting  Agreement  and the proxy granted
pursuant thereto.  The form of the Voting Agreements is attached as Exhibit A to
the Merger  Agreement and is  incorporated  by reference  herein.  The foregoing
description  of the Voting  Agreements is qualified by reference to Exhibit A to
the Merger Agreement incorporated herein by reference.


                               Page 11 of 12 Pages

<PAGE>

ITEM 5.  INTEREST IN SECURITIES OF THE ISSUER

         The  information  previously  furnished  in  response  to this  item is
amended to read as follows:

         The Reporting Persons may be deemed to share the power, pursuant to the
Voting  Agreements,  to vote  7,377,139  shares of Company  Common  Stock in the
aggregate, which shares constitute approximately 20.5% of all outstanding shares
of Company Common Stock as of January 16, 1998.

         Qwest  intends to acquire  control  over the  Company  pursuant  to the
Merger  Agreement and the Voting  Agreements.  If the Merger is effected,  Qwest
will acquire all the outstanding shares of capital stock of the Company.


ITEM 6.  CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
         RELATIONSHIPS WITH RESPECT TO SECURITIES OF ISSUER

         Reference  is made to Item 4 of this  Amendment  No. 1 and the exhibits
incorporated  herein by reference for a description of the Merger  Agreement the
Voting Agreements.


ITEM 7.  MATERIAL TO BE FILED AS EXHIBITS

  Exhibit 3           Amended and Restated Agreement and Plan of Merger dated as
                      of December 31, 1997 among Phoenix  Network,  Inc.,  Qwest
                      Communications   International   Inc.   and  Qwest  1997-5
                      Acquisition Corp.(1)





- --------
       (1) Filed as Exhibit  99.1 to the  Current  Report on Form 8-K of Phoenix
Network,  Inc.  dated February 9, 1998 and filed with the Commission on February
9, 1998, and incorporated herein by reference.


                               Page 12 of 12 Pages

<PAGE>

                                    Signature
                                    ---------


         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.



February 9, 1998
Date


QWEST COMMUNICATIONS INTERNATIONAL INC.



By: /s/ Robert S. Woodruff
   ----------------------------------------
        Robert S. Woodruff
        Executive Vice President - Finance,
        Chief Financial Officer and
        Treasurer





                                       S-1

<PAGE>

                                    Signature
                                    ---------


         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.



February 9, 1998
Date


QWEST 1997-5 ACQUISITION CORP.



By: /s/ Robert S. Woodruff
   ------------------------------
        Robert S. Woodruff
        Treasurer



                                       S-2

<PAGE>

                                    Signature
                                    ---------


         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.



February 9, 1998
Date


ANSCHUTZ COMPANY



By: /s/ Philip F. Anschutz
   ----------------------------
        Philip F. Anschutz
        Chairman and
        Chief Executive Officer



ANSCHUTZ FAMILY INVESTMENT COMPANY LLC

By:      ANSCHUTZ COMPANY,
         its Manager



         By: /s/ Philip F. Anschutz
            -----------------------------
                 Philip F. Anschutz
                 Chairman and
                 Chief Executive Officer



                                       S-3

<PAGE>

                                    Signature
                                    ---------


         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.



February 9, 1998
Date



 /s/ Philip F. Anschutz
- ------------------------------
     Philip F. Anschutz



                                       S-4

<PAGE>

                                  EXHIBIT INDEX


    Exhibit 3         Amended and Restated Agreement and Plan of Merger dated as
                      of December 31, 1997 among Phoenix  Network,  Inc.,  Qwest
                      Communications   International   Inc.   and  Qwest  1997-5
                      Acquisition Corp. (1)


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    (1)   Filed as  Exhibit  99.1 to the  Current  Report on Form 8-K of Phoenix
Network,  Inc.  dated February 9, 1998 and filed with the Commission on February
9, 1998, and incorporated herein by reference.


                                     Ex. - 1



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