Battle For MCI: Qwest Offers $9.75 Billion

Just when you thought it was over, well Qwest has come up with another big offer – $30 a share, or a total of $9.75 billion for MCI. That’s a 30% premium to Verizon’s $7.51 billion. I think with this offer. Q has matched the demands of MCI board, leaving them very few options. Q calls this offer its best and final offer. I thought that buying out Carlos Slim’s stake in MCI, Verizon had trumped Qwest at best and bought insurance at worst. MCI shareholders Legg Mason Capital, American Express and Omega Advisors are putting up $800 million in cash to help Qwest boost the offer to $9.75 billion, Bloomberg reports. Those three MCI shareholders have 13% of the company. I am looking forward to may 16th when MCI shareholder meeting is held in Ashburn, Virginia. It could be a shouting match not too miss, and I would love to see the board members explain why Michael Capellas got $6.5 million in salaries and bonus last year. His bonus was $5 million. Not bad for a company which is seeing is revenues shrink with every passing month. Look through their filings carefully, and they have been selling off assets like real estate to keep going. This morning, Indian outsourcing company vCustomer bought MCI’s seven call centers in US and Philippines. The Economic Times says there are five total call centers. So different data. Anyway the deal means that vCustomer is now going to be running MCI’s operator’s directory assistance service, operator service and relay service assets.

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