Qwest Communications International Inc yesterday offered US$8.45 billion to acquire MCI Inc, adding nearly a half-billion dollars to its bid to break up the long-distance phone company's planned merger with Verizon Communications Inc.

　　The sweetened offer, worth about US$1.8 billion more than the current value of MCI's agreement with Verizon, was presented to MCI's board on Wednesday in a meeting that stretched into the night.

　　MCI, which changed its name from WorldCom a year ago, said yesterday its board will respond to Qwest's new offer by close of business on March 28.

　　In submitting the proposal, Qwest said MCI's lawyers apparently agreed during talks over the past two weeks that a Qwest-MCI deal would gain government approvals more quickly than a Verizon-MCI merger, which Qwest has argued would hurt market competition.

　　Verizon has asserted just the opposite, and yesterday it quickly reiterated its contention that Qwest and its offer were financially unsound.

　　Qwest, in a letter to MCI's board, said "MCI's legal counsel has acknowledged that the Qwest/MCI transaction could close more quickly than a Verizon/MCI transaction, although they did not agree with us as to how much more quickly."

　　Qwest's original proposal of US$8 billion was turned down by MCI in favor of Verizon's bid out of concerns about Qwest's weak financial health and questionable business prospects.

　　Separately, former WorldCom Inc Chief Executive Bernard Ebbers, who was convicted in a US$11 billion fraud on Tuesday, asked a bankruptcy court to throw out the firm's US$408 million lawsuit against him, saying it lacks jurisdiction to hear the case.

　　MCI Inc is suing Ebbers to recover money it says he borrowed and never paid back.

　　Ebbers, 63, said the US Bankruptcy Court in New York lacks jurisdiction to hear the case because MCI is no longer bankrupt and creditors won't receive any of the lawsuit's proceeds.

　　(AP/Bloomberg)