Summary:

It is time for Qwest to cut it losses and run, and let Verizon deal with the mess. Today another new accounting snafu at MCI, which tells me the innards of that company are rotting, and Michael Capellas and his crew want to hand over the […]

It is time for Qwest to cut it losses and run, and let Verizon deal with the mess. Today another new accounting snafu at MCI, which tells me the innards of that company are rotting, and Michael Capellas and his crew want to hand over the mess to someone else. They know they don’t have a handle on the situation. Qwest however has raised its bid to $8.45 billion or about $26 a share. This is 7.4 percent higher than previous offer of $24.20 per share. Verizon had been keeping a low profile but today Verizon Chairman and Chief Executive Ivan Seidenberg in a letter to regulators pointed out that both Qwest & MCI were involved in accounting scandals they had “unrealistic merger promises.” Qwest’s bid has a “desperate quality,” he said. “Its claims of $14.8 billion in savings from a MCI deal “do not pass a common sense test. Qwest fails to explain the financial alchemy required to keep Qwest afloat, complete the acquisition of MCI and invest in the business,” Seidenberg wrote in the letter.

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