Verizion Gives MCI Two Weeks
Verizon is giving MCI two weeks to make up its mind about merging with Qwest Communications.
Verizon remains confident that its deal with MCI will still go through.
“Verizon recognizes that it is in the best interests of the stakeholders of both Verizon and MCI to address recent market speculation regarding Qwest’s claims that it can deliver greater value to MCI’s shareholders,” Verizon said. “Notwithstanding this speculation, we believe that this process will result in MCI reaching the same conclusion that it reached after seven months of discussions with Qwest.”
According to a CNN Money article,
“Some MCI shareholders objected to the company accepting the Verizon deal, which essentially paid no premium from the value of the MCI stock the day before the deal was announced. But advocates of the Verizon bid have said that the stronger financial position of Verizon make that offer worth more in the long run.
Qwest modified its offer for MCI last week, providing protection against a drop in its stock price and a faster cash payout in an effort to answer concerns about its bid. MCI Chairman Nicholas Katzenbach released a letter Tuesday that he sent to Qwest, saying the company would consider the new offer.”
“The MCI Board will respond in due course after conducting a thorough review of Qwest’s revised proposal, as it has with all previous proposals,” the letter said. “I am hopeful that this letter will clear up any misconceptions and reassure you that the latest proposal from Qwest will receive the same extensive review as all previous proposals.”
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