Qwest’s bidding war with Verizon over MCI continues, with MCI agreeing to review a bid from Qwest of almost $9 billion.
MCI Inc.’s move comes just days after it agreed to a takeover bid from Verizon Communications Inc. MCI in February agreed to a $6.75 billion bid from Verizon, but Qwest sought to snatch MCI away from Verizon with an $8.45 billion bid for the carrier. However, Verizon increased its bid to $7.6 billion and MCI again accepted, but late Thursday Qwest boosted its bid for MCI to $8.94 billion.
“In accepting Verizon’s amended offer, the MCI board has failed to take into consideration the significant additional value that the Qwest proposal delivers to your shareholders from projected synergies as compared to a merger with Verizon,” wrote Richard Notebaert, Qwest’s chairman and chief executive officer, in a caustic open letter to MCI’s board.
“MCI today announced its intention to re-engage with Qwest to review Qwest’s March 31, 2005, proposal to acquire the company,” MCI said in a statement. “MCI has received a waiver from Verizon enabling it to engage in discussions with Qwest at any time until the date of the MCI shareholder vote on the proposed Verizon transaction. That date has not yet been set.”
MCI’s stock was up slightly after the news to around $25.20 per share. Verizon’s stock was down slightly to $35.41 per share, while Qwest’s stock was down slightly to $3.66 per share.
