Qwest Not Done Fighting for MCI
After losing out to Verizon, Qwest Communications is planning to submit another bid for MCI.
Apparently Qwest CEO, Richard Notebaert is rather angry about MCI’s deal with Verizon which amounts to $6.75 billion. Notebaert wrote a letter to MCI explaining reasons which have caused him to be upset.
Following are some samples from the letter.
“We would like to advise you that once we have completed our review of the Verizon merger agreement, we do intend to submit a modified offer to acquire MCI and we would expect MCI and its advisors to engage us in meaningful dialog regarding the merits of our offer and we would further expect access to due diligence information consistent with that offered other parties,” wrote Notebaert.
The consideration to MCI shareholders in the Verizon proposal is substantially less than the consideration Qwest offered to MCI shareholders,” wrote Notebaert.
“In addition to the superior merger consideration offered by Qwest to your shareholders compared to the Verizon offer, we would like to remind you that Qwest’s proposal is superior to the Verizon proposal because our regulatory approval process is likely to be completed at least six months more quickly and the value to the MCI shareholders from participation in approximately 40 percent of the synergies in a Qwest transaction will substantially exceed the value of synergies that would be received by MCI shareholders in a Verizon deal.”
Some of MCI’s shareholders believe that the company should reconsider an offer from Qwest.
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