MCI gives Qwest the bid brush-off
LONG-distance telecoms company MCI today rejected a $9.1bn (£4.9bn) takeover offer from Qwest Communications International, putting Vodafone partner Verizon back in pole position to win control.
Qwest said it still believed its bid was superior to MCI's existing $7.6bn agreement with Verizon and hinted it may take the offer directly to shareholders.
'We are confident that our offer is superior, and statements of support from many MCI shareowners indicate that they are in agreement with us,' Qwest said.
The company has been lobbying smaller shareholders, who Qwest believes-could swing the deal its way, although poison pill defences would make that route more expensive.
Both Verizon and Qwest want to win MCI for its lucrative telephone and data services to large corporations.
But analysts have questioned whether heavily indebted Qwest, a much smaller company than Verizon, has the necessary financial clout for the long term.
Qwest had given MCI a deadline of midnight yesterday, saying it would withdraw its offer if MCI failed to deem it superior to Verizon's deal.
