The long-running battle to buy MCI is continuing after Verizon
Communications raised its offer for the company to $8.5bn
(£4.72bn).
This offer has been accepted by the MCI board but it is below
the $9.9bn that Qwest Communications offered in its last bid.
Although the MCI board was forced to declare the last Qwest bid
as superior, it has consistently maintained that Verizon is in
better financial shape to take it over.
The raised Verizon bid has allowed MCI to jump back to its
preferred bidder.
The MCI board has also said that some of its large enterprise
clients have started to insert clauses in contract renewals that
stipulate they can change supplier if Qwest wins the takeover
battle with Verizon, as they prefer Verizon as a possible future
telecoms provider.
Qwest could come back with a revised offer, even though its last
one was supposed to be “final”.
