Verizon buys slice of MCI
PrintIt's not hostile but it's not exactly friendly
Posted in Financial News, 11th April 2005 11:14 GMT
Free whitepaper – Thermal design of Dell PowerEdge server
Verizon is buying a piece of MCI direct from Mexican billionaire Carlos Slim for $1.1bn to fend off competing bids for the company formerly known as WorldCom from Qwest Communications.
The 13 per cent stake cost Verizon slightly more than it is offering other MCI shareholders. By buying such a large slice of the firm Verizon makes it very difficult for Qwest to get back in the bidding.
But Qwest isn't quitting yet and the firm may launch a hostile takeover. Qwest criticised the deal for creating two classes of shareholders - Carlos Slim was paid more for his shares than other shareholders are being offered.
MCI has been at the centre of a bidding war for months - it accepted an offer from Verizon despite Qwest offering more cash.®
Related stories
MCI rejects Qwest, cuddles up to Verizon
MCI mulls latest Qwest offer
Qwest ups bid for MCI - yet again
Free whitepaper – Migrating to the new Dell Management Console
What Exchange can't do - and Dell can
Automating the Acquisition Process with Enterprise Level CRM
10 Strategies for Choosing a Midmarket ERP Solution
Enabling the Agile Data Center
10 Steps to a Successful CRM Implementation
Dirty, dirty PCs: The X-rated picture guide
Top 500 supers - rise of the Linux quad-cores
Early adopters bloodied by Ubuntu's Karmic Koala
Sign up, sign up for The Register IT security newsletter