Last Friday MCI CEO Capellas said in response to MCI shareholders against the Verizon deal, "In Verizon we see a partner that compliments our business," he continued, "We recognize the input of shareholders. We acknowledge receipt of Qwest's proposal and remain respectful to all parties."
Qwest is willing to set a third bid for MCI, even though their latest bid is a billion dollars greater than that of Verizon. The only thing Qwest wants is some respect. They want to talk with MCI. The latest bid pays cash at a faster rate than the prior offer and protects MCI from the potential of Qwest shares dropping by up to 10%. Problem is Qwest's stock dropped over 8% in response to the new offer.
While Qwest's stock tanks, Verizon's (chart) in fact is increasing and just rose almost 2% in a day to $36.20. The market it seems may be rewarding Verizon for being able to pull of an acquisition so cheaply while Qwest is forced to pay a premium. Perhaps Verizon shareholders think MCI is selling too low?
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