MCI favours Verizon over Qwest
by Brian Turner
MCI has rejected a bid of $8.93 billion (or $27.50 per share) from Qwest Communication in favor of a lower bid from Verizon Communications, the largest U.S. telecommunications group.
MCI said it rejected the offer from Qwest for several reason, including negative feelings from MCI customers over the deal.
However, a major group of large MCI shareholders are reported to favor the Qwest deal and have vowed to vote against the Verizon merger, an agreement for which was signed seven weeks ago, if and when it is presented to MCI shareholders for approval.
Meanwhile, Qwest is determined to pursue the deal with MCI, perhaps by raising its offer to as much as $9.4 billion (between $28.50 and $29.00 per share).
Qwest is also rumored to be considering taking its existing offer or a modified offer directly to MCI shareholders.
MCI has indicated that it is still willing to talk to Qwest, especially if Qwest is willing to raise its offer to $30.00 a share, but Qwest has indicated that it is not willing, at least at this time, to bid that high.
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