MCI chooses Verizon's raised $8.5 billion deal

Posted on Monday, May 02 2005 @ 19:12 CEST by Thomas De Maesschalck
MCI today accepted the raised $8.5 billion bid from Verizon, while Qwest offered the company a final bid of $9.9 billion. The company states that it chose the lower bid from Verizon because they might lose customers if they chose the Qwest deal.
MCI's stable of large corporate and business customers, second only to AT&T Corp.'s, is the major motivation behind Verizon's and Qwest's efforts. Qwest also sees the opportunity to cut $14.8 billion in costs through a MCI deal, providing its best chance to reduce its $17 billion in debt and improve its weak cash flow.
The company explained that many of its large users didn't prefer the Qwest deal and that they received many requests from users to terminate their arrangements with MCI in case of a Qwest transaction. More info about the deal at Reuters

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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