Verizon moves on MCI investors
Verizon Communications, the largest U.S. telecommunications company, agreed over the weekend to pay Carlos Slim, MCI’s largest single shareholder and an opponent of Verizon’s bid to buy MCI, $1.1 billion for his 43.4 million shares in the company.
This makes Verizon MCI’s largest shareholder and greatly strengthens their effort to acquire MCI. Verizon now seems to have a commanding advantage over Qwest Communications in the ongoing struggle between the two companies to take over MCI.
Qwest has reportedly not given up their efforts to acquire MCI, however, despite several rejections of its bids. Qwest executives are said to have met on Sunday with bankers to explore their options.
Qwest had earlier arranged to deal to raise additional equity from MCI shareholders who oppose Verizon’s bid, in order to shore up their latest bid.
Now, with Verizon’s purchase of Mr. Slim’s shares, it seems unlikely that Qwest can count on a sufficient number of MCI’s shareholders to outbid Verizon.
MCI’s board of directors reportedly favor Verizon’s bid due to its financial superiority. MCI also says its customers favor Verizon.
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