KPNQwest, the Dutch data communications and hosting company, has awarded Bear Stearns the mandate to help reorganise its balance sheet in the same week as it emerged the bank would make staff cuts in Europe.

KPNQwest has said it will review its 2002 financial guidance in light of deteriorating market conditions. The company reported that revenue for 2002 will probably be between €1bn ($897m) and €1.1bn, rather than the previously predicted €1.3bn. Earnings before interest, tax, depreciation and amortisation (Ebitda) are expected to be around €140m rather than €175m.