And the next mega merger will be…

…between long-distance telco MCI and RBOC Qwest, if reports in the press are to be believed. According to the Financial Times, Qwest has tabled a USD6.3 billion bid for MCI, although neither company has thus far commented on the outcome of the offer. The on again, off-again discussions between the two are reported to have found a new momentum following SBC’s announcement earlier this week that it would acquire AT&T, MCI’s arch rival in the long-distance and business communications markets. However, some analysts have dismissed the potential marriage as so flawed that the talks might be a ploy to lure a third party to the table, most likely Verizon Communications. They suggest that as the weakest companies in their respective fields (Qwest is toiling under a USD17.2 billion debt pile while MCI is still shaking off its tarnished image as the former WorldCom), MCI and Qwest are simply not a logical combination; both need alliances with strong market leaders if they are to succeed. While an offer for MCI from Verizon could be on the cards, it has thus far remained tightlipped as to its plans.