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Summary:

Qwest Communications is not done fighting over MCI. Tomorrow company’s board of directors are going to meet and decide if the company should raise its bid for MCI again, by about a $1 a share to $27.50 a share. Verizon has offered $23.50 a share, while […]

Qwest Communications is not done fighting over MCI. Tomorrow company’s board of directors are going to meet and decide if the company should raise its bid for MCI again, by about a $1 a share to $27.50 a share. Verizon has offered $23.50 a share, while Qwest’s previous offer was $26.50 a share. In addition, Qwest has hired a NY-based proxy adviser, The Altman Group, as it considers its options. Bill Miller of Legg Mason Inc., who owns 1.7% of MCI shares dismissed Verizon’s proposal as too low and said that MCI board should allow the shareholders to vote. “I haven’t heard of any significant MCI shareholder that’s in favor of the Verizon deal,” he told Bloomberg. “We believe Verizon’s substantial increase in its offer, the strength of its competitive position and the financial certainty at close make this offer compelling to our shareholders, customers, and employees,” Nicholas deB. Katzenbach, MCI’s chairman, said in a statement.

  1. Charlie Sierra Wednesday, March 30, 2005

    I’m very disappointed that VZ got suckered into raising its initial bid, because now the trap is set.

    Frankly, this should be a blessing in disguise for VZ. They should just walk.

    Now if VZ was thinking clearly they’d turn their attention to the Sextel merger, and make a serious bid for Nextel.

    Since VZ’s biggest threat is the rise of the MSOs, and the MSOs only real option to add wireless to their portfolio is via Sextel. If VZW can seperate these two young lovers, a single Sprint will have a much smaller PCF cushion, and will thus need to negiotiate a much more expensive deal with MSOs to make up for any difference.

    What sucks about telecom is the absence of any visionaries and players with balls.

  2. Good points charlie. i think this was coming. I am not sure why VZ wants these guys so badly? simply unfathomable for me to figure this one out. let qwest have the crap, and two one-eyed will become blind. i think even Q is over paying for this piece of junk, and you are right VZ should have walked!

  3. Qwest is a desperate, desperate organization. If they don’t get MCI, they realize they aren’t long for this world. They will have two choices – be acquired or watch their core business slowly erode.

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