Saturday, April 23, 2005

Verizon Considers its Options with MCI

In response to MCI's finding that Qwest had a superior offer, Verizon said it was now reviewing its options. Under the terms of the Verizon-MCI definitive merger agreement, these include requiring MCI to continue to finalize its proxy statement and to organize a meeting of MCI's shareholders to consider the agreed transaction with Verizon. Alternatively, Verizon may elect to terminate the agreement with MCI. Upon such a termination, Verizon would be entitled to be paid by MCI a $240 million break-up fee plus an expense reimbursement of up to $10 million, and the same amounts would be payable following an MCI shareholders meeting if the Verizon-MCI transaction were not approved and an agreement was signed with Qwest.