Verizon & MCI merge

As of February 14, Verizon Communications and MCI, Inc. have announced that Verizon has agreed to bid on MCI for $6.8 billion, rejecting an $8 billion offer from Qwest Communication. In merging of these two companies, the Boards of Directors of both companies have approved the agreement. MCI shareowners will receive 0.4062 shares of Verizon common stock for each common share of MCI. This is worth $4.795 billion and equivalent to $14.75 per MCI share, based on Verizon's closing price on Friday, Feb. 11. MCI shareowners will also receive $1.50 per MCI share in cash. In addition, MCI will pay its shareowners quarterly and special dividends of $4.50 per share. In total, the transaction values MCI shares at $20.75 a share, or $6.746 billion. Yet, from late news, Qwest is still in pursuit in bidding for MCI. On Feb. 17, Qwest sent a letter to both the U.S. Securities and Exchange Commission and MCI stating its intent to enter another bid to counter Verizon. Whether or MCI will reconsider the merge, we have to wait and see.

http://www.denverpost.com/Stories/0,1413,36~26430~2727157,00.html
http://www.forbes.com/business/2005/02/23/cx_tdb_0223polldujour.html