Qwest to Up Bid for MCI

Qwest Communications is planning increase its bid for MCI to stop its deal with Verizon.

The new bid should be given to MCI by early next week. According to a Reuters article, sources “familiar with the situation” say that the offer would value the company at more than $24.60 a share.

A Bloomberg article says:

“MCI, the No. 2 U.S. long-distance operator, reopened negotiations after Denver-based Qwest revised the $24.60-a-share bid. MCI directors are discussing Qwest’s approach in a meeting today. Qwest may increase the cash element of the cash and stock proposal, said two of the people, who asked not to be named.

A more attractive bid from Qwest would increase pressure on Verizon, the No. 1 U.S. phone company, to offer more than the $6.75 billion it agreed to pay. MCI’s largest shareholders, including billionaire Carlos Slim, said last week that MCI Chief Executive Officer Michael Capellas should push Qwest and Verizon for a higher offer.”

“Verizon has to increase their bid or they’re going to lose it,” said Patrick Comack, an independent telecommunications analyst.

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