Feeds

Verizon's MCI takeover faces shareholder revolt

Shareholders want explanations...

  • alert
  • submit to reddit

Top three mobile application threats

Verizon's takeover of MCI could be stymied by MCI shareholders who want to know why an apparently higher offer for the firm was rejected.

Verizon offered $6.75bn for MCI - the company formerly known as WorldCom - which MCI accepted, despite receiving a offer from Qwest of a reported $7.3bn.

Three institutional investors, representing 10.5 per cent of MCI shares, believe MCI should reconsider the higher offer from Qwest or remain as an independent company. John Berkowitz, president of Short Hills, which owns 3.5 per cent of MCI, told Bloomberg the offer was "very disappointing for MCI owners". Paulson and Co and Fairholme Capital Management are the other two hold-out shareholders.

Qwest, the unsuccessful bidder seems unlikely to give up quietly. Qwest president Richard Notebaert said MCI's decision surprised him. "We were a very good fit for MCI or we would not have made the proposals as strong as they were. How do you argue leaving a billion of cash? That's a lot of money to leave on the table," he told Bloomberg.

But analysts are less certain that Qwest would be a better fit than Verizon.

Mexican billionaire Carlos Slim Helu owns over 13 per cent of MCI, which will net him $600m if the deal goes through. ®

Related stories

Verizon and MCI to tie the knot
Verizon close to MCI deal - report
MCI 'makes $5m a year from spam gangs'
Qwest courts MCI for telecoms take-over

Combat fraud and increase customer satisfaction

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Intel sees 'signs of improvement in the PC business' but earnings remain 'Meh...'
Prospects for the future, however, please Wall Street money men
What's a right pain in the ASCII for IBM? Its own leech-like hardware biz
Keep your eyes on our cloud while we remove this pesky thing, say execs
Oracle's Larry Ellison has the MOST MASSIVE PACKAGE IN PUBLIC
Billionaire IT baron earns twice as much as the next in line, Disney chief Bob Iger
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.