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?
Subscriber content
?
Subscriber content comes from Gigaom Research, bridging the gap between breaking news and long-tail research. Visit any of our reports to learn more and subscribe.
Advertisement
Advertisement
Advertisement
["wijax_7a87f74ec7c28d3443ad8f7628676de9","wijax_b64e72fea0e604c836ed501186186aac"]
{"source":"https:\/\/gigaom.com\/2005\/03\/29\/battle-for-mci-vz-in-qwest-out\/wijax\/49e8740702c6da9341d50357217fb629","varname":"wijax_6596c8b9a6d7631132553da3b2c791ff","title_element":"header","title_class":"widget-title","title_before":"%3Cheader%20class%3D%22widget-title%22%3E","title_after":"%3C%2Fheader%3E"}
{"source":"https:\/\/gigaom.com\/2005\/03\/29\/battle-for-mci-vz-in-qwest-out\/wijax\/49e8740702c6da9341d50357217fb629","varname":"wijax_6596c8b9a6d7631132553da3b2c791ff","title_element":"header","title_class":"widget-title","title_before":"%3Cheader%20class%3D%22widget-title%22%3E","title_after":"%3C%2Fheader%3E"}
Comments have been disabled for this post