Qwest Not Backing Down in MCI Bidding War

    March 31, 2005

Qwest Communications has upped its offer for MCI again, this time to $8.94 billion , an increase of $500 million.

Two days ago, Verizon increased its offer to MCI to agreed to $7.51 billion, which MCI accepted. Qwest has already been rejected twice.

“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.”

According to an Associated Press article,

“MCI spokesman Peter Lucht said the board will review Qwest’s latest offer and “respond accordingly.” Verizon spokesman Eric Rabe declined comment.

The latest Qwest offer was equal to $27.50 a share, excluding a 40-cent dividend paid to MCI shareholders this month. It included $13.50 per share in cash and more protection against a decline in Qwest stock for MCI shareholders. Its previous offer was $25.60 a share.”

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

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