Verizon Snaps Up 13.7% of MCI Shares

This morning Verizon announced that it has agreed to purchase all shares of MCI controlled by Mexican telecommunications magnate Carlos Slim Helu. Read the announcement here on our news feeds:

Verizon to Purchase All Shares of MCI Owned by Entities Affiliated With Carlos Slim Helu

The purchase amounts to 43.4 million shares at $25.72/share. The total purchase is $1.1 billion in cash. Slim (that's what insiders seem to call him) is receiving a higher price than other shareholders would under Verizon's MCI. Qwest objects to Verizon's creating "two classes of shareholders" in their announcement also issued today:

Qwest Responds to Verizon Announcement

Seems to me that Verizon's move on the Slim holdings is in part designed to head off a hostile takeover by Qwest.

AB -- 4/9/05

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April 9, 2005 2:58 PM |