Qwest Gets Another Chance For MCI
MCI will reopen merger talks with Qwest over the next two weeks, to reconsider an $8 billion offer.
“They had to do this because if they didn’t it would be a breach of their fiduciary duty,” said Joseph Pojanowski III, an MCI shareholder who sued the company after Verizon agreed to buy MCI for a lower bid.
Some believe that Qwest just doesn’t have what it takes to compete with Verizon.
Qwest CEO Richard Notebaert is glad that MCI is reopening talks, but questions if the company will give Qwest’s offer a “meaningful evaluation”.
MCI says, “Today, some 20 MCI representatives, including advisers, met with Qwest for the better part of a day in … meetings that outlined a process and next steps for conducting a thorough review. We believe that constructive dialogue – rather than rhetoric – is in everyone’s best interest.”
A Denver Post article says:
“Notebaert has been touring the East Coast touting Qwest’s bid. Tuesday, he pitched it to more than 100 shareholders and analysts in New York. Wednesday, Notebaert met with members of Congress on the same day a House committee grilled the CEOs of major telecommunications companies – including MCI and Verizon – about how pending telecom mergers would affect consumers.
Notebaert is waging a fierce battle on several fronts by sweetening Qwest’s bid, reaching out to MCI shareholders and lobbying lawmakers. He calls the Verizon-MCI and SBC-AT&T mergers a “duopoly” that would crush competition.”
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