Comments on: Qwest offers $8 Billion for MCI http://gigaom.com/2005/02/24/qwest-offers-8-billion-for-mci/ Fri, 10 Feb 2012 16:35:23 +0000 hourly 1 http://wordpress.com/ By: Steve Castellano http://gigaom.com/2005/02/24/qwest-offers-8-billion-for-mci/#comment-100474 Wed, 30 Nov -0001 00:00:00 +0000 http://gigaom.wordpress.com/2005/02/24/qwest-offers-8-billion-for-mci/#comment-100474 Hi Om, in repsonse to your call for comments here is my take. Qwest will never win the bid, given 1) Verizon’s ability to slightly raise or modify its bid; and 2) MCI’s desire to appease shareholders who don’t want to see the combined company fizzle post merger with a more weakly positioned company. I discuss my view in a little more detail here.

]]> By: Reflections on Equity Research http://gigaom.com/2005/02/24/qwest-offers-8-billion-for-mci/#comment-100475 Wed, 30 Nov -0001 00:00:00 +0000 http://gigaom.wordpress.com/2005/02/24/qwest-offers-8-billion-for-mci/#comment-100475 Qwest Will Not Win MCI (and a Comment on Outsourcing)

The following is all based on my opinion only, and should be considered purely as my speculation; it should not be taken as a recommendation to actually buy or sell any stock.

COMMENT:
AUTHOR: Om Malik

It does expose Q to the machinations or something like that. The collar effectively transfers the risk from the MCI shareholders to the Q shareholders and makes this a much sweeter deal for MCI. Combined with the facts that the GSA has approved Q to bid on government contracts, the Q bid is over $1B more, and the Q deal would be completed in about half the time they still have a very good chance of winning this.

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