Feeds

MCI faces shareholder fury

Moody merger gets moodier

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

MCI, which last week agreed to be bought by Verizon, has been forced onto the defensive over the deal.

Michael Capellas, MCI's chief executive, is under pressure to explain why he took the lower offer for the firm. Verizon offered $6.7bn to buy MCI, which the board accepted. But a rival $8bn bid from Qwest was rejected.

Rebel MCI shareholders are so unhappy at the deal that some have started court action. MCI directors are accused of breaching their fiduciary duties - their legal responsibilities as board members.

Shareholder Paul Pojanowski filed a lawsuit in the Delaware Chancery Court on Friday. The case describes Verizon's offer for MCI as "unconscionable, unfair and grossly inadequate". It asks the board to hold an open auction for the firm and give proper consideration to Qwest's rival offer, according to the FT. Institutional investors representing more than ten per cent of MCI's stock have already said they are unhappy with the deal.

Carlos Slim, MCI''s largest single shareholder, is still to make up his mind on the merits of the merger.

Capellas insists Verizon offers a more secure future for MCI. ®

Related stories

Qwest to bid again for MCI
Qwest goes public with $8bn MCI bid
Verizon and MCI to tie the knot

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.