Qwest to Raise MCI Bid to $30 a Share to Scuttle Verizon Deal
By: Administrative Account | Source: Bloomberg
April 21, 2005 5:30PM EST

April 21 (Bloomberg) -- Qwest Communications International Inc., the No. 4 U.S. local-phone company, will raise its bid for MCI Inc. to $30 a share, or $9.75 billion, to derail MCI's agreement to be bought by Verizon Communications Inc. Denver-based Qwest will pay $16 a share in cash and $14 a share in stock, increasing its previous offer from $27.50 a share, the company said in a statement. The company also raised $800 million from investors. Qwest's sweetened offer heightens pressure on MCI's board to end an agreement to be purchased by Verizon, the largest U.S. local- phone company, for $7.51 billion. Ashburn, Virginia-based MCI spurned Qwest's advances, saying Verizon would make a stronger ally in a battle for large corporate customers. MCI investors including Elliott Associates LP said Verizon underpaid. Shares of MCI rose 23 cents to $26.50 as of 4 p.m. New York time in Nasdaq Stock Market composite trading, signaling investors expect more that the $23.10 a share offered by Verizon. Qwest rose 7 cents to $3.61 and Verizon gained 48 cents to $34.26 on the New York Stock Exchange.

To contact the reporter on this story: Dana Cimilluca in New York at dcimilluca@bloomberg.net.