Qwest Raises its Bid for MCI

Qwest Communications made a new offer to acquire MCI. The new bid includes $13.50 in cash (excluding MCI's March 15 dividend payment of $0.40 per share) and 3.373 Qwest shares (subject to adjustment under a collar which fixes the value of the Qwest shares at $14.00 provided Qwest's share price is between $3.32 and $4.15) per MCI share. Qwest's previous proposal was $10.10 in cash (excluding MCI's March 15 dividend payment of $0.40 per share) and 3.735 Qwest shares (subject to adjustment under a collar which fixes the value of the Qwest shares at $15.50 provided Qwest's share price is between $3.74 and $4.57) per MCI share.


MCI's Board of Directors has agreed to review the revised proposal.


In a statement, Qwest's CEO, Richard C. Notebaert, said he remains committed to a Qwest/MCI transaction and believes it will deliver superior value to MCI shareholders as well as significant benefits to customers, employees and other stakeholders. He expressed concern that MCI's Board appears to be favoring Verizon and not allowing Qwest to present its best case.
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