No more money, but Qwest improves MCI offer

As reported by Comms Update yesterday, Qwest has formally modified its USD8 billion offer for MCI by adding a mechanism to guarantee the value of the stock portion of the bid, setting the stage for another round of competition with Verizon Communications. Qwest also offered a faster cash payment to shareholders, but did not increase the size of its offer from the USD8 billion already on the table. The new bid comes after a number of key MCI shareholders have begun to put pressure on the company’s board, which last week accepted a USD6.7 billion offer from Verizon, to review its decision. The revised bid could well lead to another offer by Verizon. Should MCI choose eventually go with Qwest, it must pay Verizon a USD200 million break-up fee.