Qwest Reopening Bidding on MCI
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Qwest has stated its intentions to up the ante in a bidding war for MCI. The company formerly known as WorldCom had accepted a $6.7bn bid from Verizon. They also spurned a $8bn bid from Qwest. Qwest is currently going over the deal between Verizon and MCI, according to a letter from Richard Notebaert to MCI's board. Indeed Qwest is still evidently smarting from coming second. CEO Richard Notebaert wrote, "The consideration to MCI shareholders in the Verizon proposal is substantially less than the consideration Qwest offered to MCI shareholders," "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."
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