Battle for MCI: VZ in, Qwest Out


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?


Victor Blake

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.

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