Verizon Closer To MCI

According to the Associated Press:

A potential obstacle has been removed in Verizon’s bid to acquire MCI.

Verizon has announced that it’s paying $1.1 billion to acquire a 13.4 percent stake in MCI directly from the company’s largest single stockholder.

Verizon and Qwest Communications have been battling for two months to win MCI — along with its national fiber-optic network and lucrative roster of government and corporate clients.

Although Qwest’s offers have been higher than Verizon’s, MCI’s board has rejected them out of concern about Qwest’s weak financial condition.

The price Verizon is paying for MCI shares is still about 7 percent below Qwest’s latest offer.

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