Sunday, May 1, 2005

MCI Accepts Verizon's Bid, Qwest Withdraws

MCI's Board of Directors accepted a new acquisition bid from Verizon provides at least $26.00 per MCI share comprised of $5.60 in cash which would be paid upon approval of the transaction by MCI's shareholders, plus the greater of 0.5743 Verizon shares for every share of MCI Common Stock or Verizon shares or cash valued at $20.40.

For its part, Qwest issued a statement confirming that it is dropping out of the bidding war for MCI. "It is no longer in the best interests of shareowners, customers and employees to continue in a process that seems to be permanently skewed against Qwest... By accepting a lower offer, without even contacting Qwest, and by reportedly allowing Verizon to instruct MCI to impugn Qwest, it is only fair to conclude that MCI is more interested in bending to Verizon's will than serving its shareholders."

See also