Qwest opens the MCI deal kimono

Qwest just filed an 8-K with the Securities & Exchange Commission, a document that outlines its bid for MCI, and how much exactly it offered! So here are the facts:

  • Qwest offered $23 dollars a share to MCI share holders, with about $7.50 a share in cash, and $15.50 a share in Qwest common stock.
  • MCI Shareholders were to get about 40 cents a share in dividend per quarter for four quarters.
  • The combined company was going to be split between MCI (40%) and Qwest (60%).

I still cannot figure out why MCI board passed on this deal: it was getting $7.50 a share in cash, plus $1.60 a share in cash dividends and 3.735 shares per MCI share. No wonder the MCI share holders are mighty upset with this whole deal!