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Last Updated: Monday, 4 April, 2005, 20:42 GMT 21:42 UK
Verizon threatens to end MCI deal
MCI logo
Both Verizon and Qwest have increased their initial offers for MCI
US telecoms company Verizon has threatened to pull out of its $7.6bn (4.01bn) deal to buy MCI.

The company said it would end the deal if MCI's board deemed a rival $9.06bn bid by Qwest Communications "superior".

In a letter to MCI, Verizon said Qwest had made an inferior offer and voiced fears that the interests of short term investors were driving the decision.

The news came after MCI reopened talks with Qwest, despite reaffirming its acceptance of a bid from Verizon.

Verizon had given MCI the go-ahead for the renewed talks with Qwest.

The long-distance phone company has twice given Verizon's offer the nod, on the grounds that the larger company offered better prospects.

Offers weighed

But Qwest has given the firm until Tuesday to reconsider its latest bid.

Several MCI shareholders have been urging the firm's board to reconsider the offer claiming that Verizon's price is too low.

MCI had cited Verizon's robust financial health and strong growth prospects as the reasons behind it accepting the bid.

Verizon underlined its security in its letter of complaint saying it was concerned that the company's "long-term strength and viability" were being ignored in the decision making process.

"Should this occur, we would no longer be interested in participating in such a process," it added.




SEE ALSO:
MCI reopens bid talks with Qwest
01 Apr 05 |  Business
MCI accepts larger Verizon offer
29 Mar 05 |  Business
Qwest raises MCI offer to $8.45bn
17 Mar 05 |  Business
MCI shareholder sues to stop bid
21 Feb 05 |  Business
Verizon wins MCI with $6.75bn bid
14 Feb 05 |  Business
MCI shares climb on takeover bid
03 Feb 05 |  Business


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