MCI Gets Anoteher Offer From Qwest

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Qwest Communications increased its offer for MCI again, this time increasing it by $500 million to $8.94 billion.

Two days ago, Verizon increased its offer to MCI to agreed to $7.51 billion, which MCI accepted.

“We once again request that you take the steps necessary under your agreement with Verizon to recognize our offer as a superior proposal,” wrote Qwest CEO Richard Notebaert in a letter to MCI’s board. “We were particularly dismayed that MCI did not contact us to discuss our willingness to adjust our offer prior to signing the amended merger agreement, a step MCI deliberately chose not to take even though it certainly could have benefited shareholders.”

A TechWorld article says:

“The Verizon offer MCI accepted comprises $8.75 in cash and Verizon stock valued at $14.75 per MCI share, for a total consideration of $23.50 per MCI share. At the time, Qwest was offering a higher $26 per share, but MCI’s board said it had considered industry conditions and its suitors’ competitive positions and decided Verizon was the superior bid.

Qwest’s new offer extends a ping-pong-like bidding war that broke out in mid-February, when Verizon agreed to buy MCI in a stock-and-cash deal worth around $6.7 billion. Qwest, which had also been in discussions with MCI, quickly followed with its own offer, forcing Verizon to increase its bid.”

Qwest will withdraw its offer if it is not accepted by Monday.

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MCI Gets Anoteher Offer From Qwest
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