Verizon and MCI

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Verizon and MCI

The Wall Street Journal reports today that Verizon is going after MCI as well with an informal bid of 6.3 billion dollars, similar to Qwest’s offer. According to the journal, Many of MCI's shareholders prefer a deal with Verizon over a tie-up with Qwest, in part because New York-based Verizon ranks as one of the nation's strongest and largest phone companies, with a market capitalization of more than $100 billion. Denver-based Qwest, by contrast, is seen as the weakest of the regional Bell companies and has a market value of roughly $7.8 billion.

Qwest has $17.2 billion dollars in debt already and such an acquisition certainly would put ever more pressure on the company. A Verizon deal obviously is the more logical for MCI if all else remains equal.



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