The battle over MCI keeps getting more intense. From Advanced IP Pipeline comes word that Verizon has bought out MCI's largest shareholders for a price that is higher than the rest of MCI's shareholders will receive based on Verizon's current offer. This of course is sure to drive remaining shareholders into the arms of Qwest, which is offering a significantly higher premium for MCI's shares.
There has been some discussion among financial analysts that Qwest is operating under the belief that they need this acquisition to ensure their survival, and that their long-term goal is to use MCI's assets to make themselves a more attractive takeover candidate, possibly by Verizon, at some point down the road, so the odds that Qwest will give up in its efforts to acquire MCI seem pretty low at the moment.
For MCI's customers and employees the continued uncertainty over the future cannot be good. Qwest, if it wins the MCI sweepstakes, will likely cut a large number of jobs (rumored at 12,000-15,000 by various news accounts) which means that there are probably an awful lot of MCI folks looking elsewhere right now. MCI's customers are also likely looking elsewhere for a more stable service provider
Let's hope that resolution of this tug-of-war comes sooner rather than later.
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