Verizon Shows Interest in MCI

Verizon has made an informal offer to buy MCI following talk that Qwest Communications was interested in buying the company.

U.S. stock-index futures went up after Wall Street Journal reported this news.

“There’s probably more consolidation to come in telecoms,” said Julian Chillingworth with Rathbone Brothers Plc. “Takeover activity will keep the market bubbling on.”

According to a Bloomberg article,

“The report of Verizon’s bid stoked speculation of further mergers and acquisitions. It comes less than two weeks after Procter & Gamble Co., the biggest U.S. household-goods maker, said it was buying Gillette Co. for $57 billion. SBC Communications Inc., the second-biggest U.S. phone company, agreed last month to buy AT&T Corp. for about $16 billion.

Verizon shares declined 14 cents to $35.92 in German trading. MCI shares didn’t trade in Europe.”

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