Qwest Communications International Inc. submitted a revised bid for Long-distance telephone company MCI Inc. on Thursday, the new offer is expected to have little impact on MCI's decision to be bought by Verizon Communications Inc. for $6.75 billion. In fact Washington Post reports the revised bid disappointed a few people, Qwest did not offer more cash for MCI stock as expected which probably was a factor in the 6 percent dive Qwest's shares took on Friday. MCI Chief Executive Michael Capellas vowed the company would "do our utmost" to complete the Verizon deal quickly and said the deal made the most sense for MCI. MCI, who was recently accused of not fully analyzing Qwest's previous offer, said it would thoroughly analyze the revised $8 billion bid by Qwest Communications International Inc.
Leon Cooperman, chairman of hedge fund Omega Advisors, which owned 2.9 percent of MCI's shares as of Dec. 31 asked "What has to happen for us to be willing and legally able to speak with Qwest to find out what they've got in their mind?"
According to Washington Post Cooperman and several other large MCI shareholders have questioned the wisdom of accepting Verizon's lower offer, and at least four lawsuits have been filed in opposition to the deal. MCI accepted the bid from Verizon, the largest U.S. telecommunications company, due in part to Verizon's solid balance sheet and stronger growth potential.
The revised bid
Qwest suggested a combined Qwest-MCI could produce more than $14 billion in cost savings and revenue growth. New Offer also included protection against a decline in its share price and a faster cash payout. Cooperman called the revised offer "disappointing."
