Bloomberg News reports that MCI has accepted a new $7.6 billion takeover offer from Verizon Communications Inc., rejecting a $8.45 billion offer from Qwest. VZ is offering $23.50 a share in cash and stock, including 40 cent dividend given out by MCI to its share holders. Q had made an offer of $26 a share. Why am I not surprised by this turn of events? Clearly MCI doesn’t want to be sold to Q, because deep down they know that it has so many problems which only a deep pocketed parent can fix. MCI shareholders are opposing the deal and will start putting more pressure on the company. The interesting thing to note in all this is that a company which is still in the shadows of a scandal is treating its shareholders like step children. Has corporate America not learned anything from the recent past?
Battle for MCI: VZ in, Qwest Out
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Editorial Masthead
1 trackback so far
9:29 AM PT
MCI Accepts Verizon Bid
To the hedge fund and other investment research recruiters who have requested samples of my work, I believe my February 25 forecast that Verizon would likely acquire MCI
2 comments so far
8:17 AM PT
Will the acquisition of a global IP network provider by a local US operator mean break-up for the network? Anyone know what Verizon’s vision is for the rest of world? Interesting questions and data on this here:
(link)
AG.
10:14 AM PT
Let’s not complain about this too much. In the end putting these two animals in the same zoo can make life in the telecom jungle a bit more calm and perhaps even easier to observe.