Quest raises ante for MCI |
http://www.sina.com.cn 2005/03/14 16:48 Shanghai Daily |
Qwest Communications International Inc plans to raise its US$8 billion offer for MCI Inc in a bid to break up MCI's proposed acquisition by Verizon Communications Inc, people familiar with the matter said. MCI, the No. 2 US long-distance operator, reopened negotiations after Denver-based Qwest revised the US$24.60-a-share bid. MCI directors discussed Qwest's approach in a meeting on Friday. Qwest may increase the cash element of the cash and stock proposal, said two of the people, who asked not to be named. A more attractive bid from Qwest would increase pressure on Verizon, the No. 1 US phone company, to offer more than the US$6.75 billion it agreed to pay. MCI's largest shareholders, including billionaire Carlos Slim Helu, said last week that MCI Chief Executive Officer Michael Capellas should push Qwest and Verizon for a higher offer. "This may force Verizon to finally come in and increase their bid," said Ed Paik, manager of the US$400 million Columbia Utilities Fund in Boston. The fund, part of Bank of America Corp, owns shares of all three phone companies. "If they really want it, they can have it. They're just going to have to pay up." Qwest CEO Richard Notebaert and Verizon CEO Ivan Seidenberg are dueling for one of the last available US long-distance operators, which has contracts with large companies such as Hewlett-Packard Co. "We have a very good bid on the table, a bid that takes into consideration all of the shareowners, the customers and the employees of MCI," Verizon said. MCI directors agreed to the lower offer because they saw Verizon, with a market value of US$100 billion, a stronger partner than Qwest, which is capitalized at US$7 billion. (Bloomberg News) |