Denver-based Qwest Communications International Inc. submitted a revised offer today for long-distance company MCI Inc., increasing its bid to $9.74 billion in cash and stock, more than $2 billion higher than the buyout deal MCI accepted from Verizon Communications Inc.
The new bid is Qwest’s “best and final offer,” Qwest CEO and Chairman Richard Notebaert said.
Qwest’s latest offer of $30 per share injects fresh uncertainty into a deal in which MCI directors – which have twice embraced Verizon Communications Inc. over Qwest – could now be forced to accept a far higher offer.
The new proposal also includes an additional $1 billion in committed financing to ease concerns about whether the combined company would have the financial resources to compete, Notebaert said in a letter to MCI’s board.
Verizon has offered $7.5 billion in cash and stock for MCI.
MCI spokesman Peter Lucht said the Ashburn, Va.-based company would review the revised offer.
“We’ve received the latest revised offer from Qwest and our board will review it carefully as it has all previous offers,” he said.
New York-based Verizon and Qwest, two of the nation’s biggest telephone companies, have been battling for more than two months to win MCI and its national fiber-optic network and lucrative roster of government and corporate clients.
MCI’s board rejected the previous, higher Qwest offers because of concerns about the Denver company’s weak financial condition.
MCI shares rose 45 cents, or 1.7 percent, in extended trading, after the higher Qwest bid was disclosed in a regulatory filing.
They closed regular trading 23 cents higher, at $26.50 on the Nasdaq Stock Market.
Qwest shares rose 7 cents to close at $3.61 on the New York Stock Exchange, then added 4 cents in the late session. Verizon shares rose 48 cents to close at $34.26 on the NYSE.
