MCI Shareholders Squabble over Verizon Offer

Rich Tehrani : Communications and Technology Blog -
Rich Tehrani
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MCI Shareholders Squabble over Verizon Offer

At least three MCI shareholders are not happy with the offer from Verizon and they suggest either doing nothing or looking at the Qwest offer. While this could be an attempt to raise the price Verizon pays, it could also present a roadblock to a deal that seemed like a sure thing

The three shareholders in question are John Paulson at Paulson & Co.; Bruce Berkowitz at Fairholme Capital Management LLC and Leon Cooperman at Omega Advisors Inc and represent three of the six largest shareholders.

Verizon is paying $20.75 a share for MCI, including $14.75 in stock, $1.50 in cash and $4.50 comprised of a special dividend and MCI's planned quarterly dividends, including a 40-cent dividend approved by the MCI board on Feb. 11.
Qwest's $23 offer comprised $15.50 in stock and $7.50 in cash. Including $1.60 in dividend payments, the bid would be valued at $24.60, or about $8 billion. Qwest's bid consisted of about $3 billion in cash, compared with Verizon's $2 billion, they said.

For more information on this evolving story check the Verizon, MCI merger page on TMCnet or read this article on Bloomberg.

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