Verizon returns to bidding war for MCI


Verizon returns to bidding war for MCI

Anthony Savvas

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”.

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