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Summary:

Reuters is reporting that MCI has received a $6 billion takeover bid from Qwest Communications International and is also talking to Verizon Communications. Qwest has a market capitalization of around $7.7 billion is one of the weakest bells, with over $17.2 billion in debt. The reason […]

Reuters is reporting that MCI has received a $6 billion takeover bid from Qwest Communications International and is also talking to Verizon Communications. Qwest has a market capitalization of around $7.7 billion is one of the weakest bells, with over $17.2 billion in debt. The reason Qwest would want MCI is for its $5.6 billion in cash, and carry forward losses. According to Wall Street Journal, the talks between Qwest and MCI have been going on for a long time, and in recent days the two companies have been talking about price and structure. “This would be a major coup for Qwest, but I don’t believe this is the deal MCI’s shareholders are looking for,” says Ben Silverman, contributing editor/telecom analyst for investment newsletter, FindProfit.com. I have to level with you guys, this one has left me scratching my head, and cannot see the merit of the deal. I think Qwest might be on slippery slope here!

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  1. Irwin Lazar’s “Real-Time” Blog Wednesday, December 31, 1969

    WSJ.com – Qwest Is in Talks to Buy MCI, Further Roiling Telecom World

    Big news from the Wall Street Journal today. (Thanks to Peter O’Kelly for noting this in his blog).

  2. North American Bandwidth News Wednesday, December 31, 1969

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