Qwest Getting The Time Of Day From MCI
MCI has apparently decided to reopen talkes of a merger with Qwest communications who has been battling with Verizon for the company.
Thursday, Qwest made an $8.9 billion offer for MCI giving the company a deadline of Monday to respond. Just before that, MCI accepted a $7.65 billion offer from Verizon.
A New York Post article says:
“MCI had rejected four previous Qwest offers and the long-distance company’s board this week reiterated its desire to merge with Verizon even though its latest bid – $7.6 billion – is well below rival Qwest’s.
The board has steadfastly clung to the Verizon offer, saying its stronger balance sheet provided MCI shareholders with a better chance of seeing their shares increase.”
It will be interesting to see what Verizon’s next move is.
According to a Washington Post article,
“MCI’s stock price rose for a fourth straight session on Friday — to a level nearly 10 percent higher than the price Verizon has agreed to pay — as investors again speculated that either Verizon will be forced to boost its bid again, or that Qwest might pull off an upset in the two-month tussle.
But rather than bidding higher, Verizon could try to halt the bidding by triggering a provision in its agreement with MCI that would require a straight vote by MCI shareholders on the current deal.”
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