Qwest to Up Bid for MCI

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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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Qwest to Up Bid for MCI
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