Proxy battle might be good for MCI?

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Marketwatch columnist John Shinal believes that the looming proxy battle over MCI might actually be a good thing in the long run.

The problem for the MCI board isn’t that it wants to sell to Verizon; it’s that it’s willing to sell the company for $23.10 a share when MCI’s shares have been trading north of $24 for more than a week. That price means investors think the long-distance provider is worth more, and with good reason. Qwest has said it’s willing to pay $27.50 a share, nearly 20 percent higher than Verizon’s latest bid.

I have been making the same argument for a long time.

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Charlie Sierra

Whats that old saying?

Bulls make money,
Bears make money,
and pigs get slaughtered.

For the record there was a merger deal announced this morning where the deal price was a buck or so below the current daily price. BFD. Its not what unusual.

In the states a stock is considered “liquid” if its daily trading volume is >= 1% of the shares per day. So there is a very distinct different between pricing 1% of the shares on any given day versus a deal for 100%. Everybody is still spoiled by dotcon memories of insane premiums, which did indeed evaporate.

I say bring on the Proxy battle, and lets see what the loudmouth shareholders have to say when it really counts. If they’re stupid enough to do business with Qwest and that deal blows up and fails to close, I’ll never stop laughing. (and you can bet your sweet ass these jokers will have exited early)

Come to think of it, that may be the best thing for Verizon after all…

PS. I sure hope Carlos Slim is not currently dumping shares on all this WSJ “chaos”. SEC, hello, sec…

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