Feeds

Crunch time for MCI/Verizon/Qwest lurve triangle

It's a real weepy

  • alert
  • submit to reddit

The next step in data security

Giant US telco Verizon is in a strop amid fears it could be jilted by MCI. It's told the company formerly known as WorldCom that if it decides to accept the $8.9bn offer from Qwest - even after already agreeing to be acquired by Verizon - then it will walk away from the deal.

Last week Qwest upped its offer to $8.9bn after Verizon increased its bid for MCI to $7.6bn. After much umming and aahing, MCI has decided to consider Qwest's offer.

But while Qwest's bid is higher in financial terms than its rival's, Verizon remains adamant that its offer is what's best for MCI.

Said the company in a statement: "Verizon believes that the decision facing MCI is not about the math of a particular moment in time; it is about good business judgement, the best interests of shareowners and the long-term viability of the new company.

"If the MCI Board, capitulating to Qwest's artificial deadline [midnight Tuesday], declares this bid to be 'superior', it would seem to us that the decision-making process is being driven by the interests of short-term investors rather than the company's long-term strength and viability."

And in a last ditch attempt to stop MCI running off with Qwest, Verizon said: "Together, Verizon and MCI would form a leading global competitor with financial strength, an extensive US and European presence, and industry leading capabilities in IP-based and wireless products and services.

"We believe a combined Verizon/MCI would be far better equipped to compete in the challenging industrial environment than a combined Qwest/MCI. Indeed, as we have written to you previously, we believe that instead of being an industry leader, a combined Qwest/MCI may not even form a viable competitor."

"Verizon's plan for MCI is clear and straight forward - Verizon intends to invest in MCI now and in the future so that MCI not only survives but prospers to become an even more formidable competitor," it said. ®

Related stories

MCI mulls latest Qwest offer
Qwest ups bid for MCI - yet again
Qwest soap opera continues
Verizon finds $1bn more for MCI

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.