Qwest Makes Last-Minute Bid for MCI

Sensing time is running out in preventing a merger between MCI and telecom giant Verizon, Qwest late Thursday made its intentions clear that it still plans to pursue acquiring MCI.

Qwest CEO Richard Notebaert made a direct appeal to MCI's board Thursday in a letter asking members to reconsider their approval of the deal with Verizon. At times, the tone of the letter hinted that Qwest may be ready to play hardball to get the long distance company.

"We do intend to submit a modified offer to acquire MCI," the letter read, "and we would expect MCI and its advisors to engage us in a meaningful dialog regarding the merits of our offer."

For undisclosed reasons, the board of MCI chose to accept Verizon's bid, which amounted to $6.75 billion in cash and stock, or $20.75 a share. However, Qwest disclosed Wednesday that its offer was for $8 billion in cash and stock, or $24.60 a share.

Several MCI shareholders expressed displeasure with the board's actions and made an appeal to Qwest for a modified bid. MCI Chairman Nicholas Katzenbach told the Washington Post that while he didn't read Notebaert's letter, the two offers were weighed carefully, and for financial and strategic reasons, the board accepted Verizon's bid.

Qwest is expected to submit a new bid within days, sources say.