Qwest Communications seems to have a new counterbid plan for MCI, a company that accepted earlier a $7.64-billion takeover offer from Verizon.
Last week, Qwest hired the Altman Group, a New York proxy firm, that is expected to keep in touch with the shareholders of MCI and try to persuade them to turn to a very lucrative offer from Qwest.
On Tuesday, MCI accepted a $7.6 billion offer from Verizon Communications saying it is more attractive to it from the point of view of Verizon’s financial strength. The company is still considering the hostile offer from Qwest that amounts to $8.45 billion in cash and stock. The counterbid is nearly $1 billion higher than the Verizon’s offer accepted by the company. Earlier, Verizon allowed MCI to reconsider the counterbid before taking any decision.
"Right now, we think that the shareholders’ interests and our interests are aligned," said Qwest’s chief financial officer Oren Shaffer.
"We still believe our proposal creates superior value for shareowners. We are going to assess the situation and determine what is in the best interests of shareowners, customers and employees," said Qwest in its statement.