MCI's Board of Directors voted that the Qwest proposal in its current form, taken as a whole, is not superior to its merger agreement with Verizon.
MCI said it remains open to the possibility of further discussions with Qwest, but that Verizon's bid provides certainty on a number of key elements, including:
- A guaranteed minimum of at least $23.50 per MCI share (including MCI's March 15 dividend payment of $0.40 per share)
- Certainty of closing
- Realistic synergy projections
- Strength of capital structure
- The ongoing ability and commitment to sustain network service quality and invest in new capabilities.
In response, Qwest issued a statement noting that its offer represents a 20% premium over Verizon's, that the cash component of its offer is 62% greater than Verizon's, and that shareholders will dictate the next steps in this process.
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