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Another Bid

By: AP
By: AP

Qwest Communications International says it's going to submit another bid for MCI Incorporated.

The announcement comes four days after the long-distance company agreed to be acquired by Verizon Communications Incorporated in a six-point-seven billion dollar cash and stock deal.

Qwest Chairman and CEO Dick Notebaert has told the MCI board of directors that Qwest would submit a modified offer and he hopes that would lead to new discussions.

The letter was included in a filing with the Securities and Exchange Commission today.

Janco Partners research analyst Donna Jaegers says it's a no-lose situation for Qwest because the worst case would be forcing Verizon to pay more money for MCI. But if Qwest is able to acquire M-C-I, she says it would improve Qwest's balance sheet.

Qwest says its failed bid for MCI had a total effective value of about eight billion dollars -- more than one-billion dollars higher than Verizon's offer.

Analysts said Verizon likely won MCI's favor because it's larger and in better financial shape than Qwest. The Denver company is weighed down by more than 17 (B) billion dollars in debt, the lack of a wireless division and competition from cable and high-speed data companies.

Qwest shares closed down 13 cents, or 3-point-3 percent, at three-dollars-84-cents a share on the New York Stock Exchange. The filing was made after the markets closed. In after-hours trading, shares jumped 11 cents, or three percent.

Verizon isn't commenting on the filing, and M-C-I hasn't responded to a request for comment.


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