Battle For MCI: Qwest Not Done Yet

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.

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