Verizon Allows MCI to Talk With Qwest

Verizon said in a statement Wednesday that it would allow MCI to resume talks for two weeks with Qwest over its renewed bid, as per Verizon's February 14 agreement with the company.

"Verizon recognizes that it is in the best interests of the stakeholders of both Verizon and MCI to address recent market speculation regarding Qwest's claims that it can deliver greater value to MCI's shareholders," the statement said.

"Notwithstanding this speculation, we believe that this process will result in MCI reaching the same conclusion that it reached after seven months of discussions with Qwest."

In the deal with Verizon, MCI stockholders will receive 0.4062 shares of Verizon for each share of MCI, which is equivalent to $14.75 per share. MCI shareowners will also receive $1.50 per MCI share in cash. In addition, MCI plans to pay its stockholders quarterly and special dividends totaling $4.50 per share.

Qwest's bid, on the other hand, was for $8 billion in cash and stock, or $24.60 a share.

According to the statements, it looks as if the renewed talks may be more of a formality to quell investor anger and analyst confusion, rather than to come to any constructive agreement with Qwest.

"MCI's Board remains committed to performing its fiduciary duties and will evaluate Qwest's position over the next two weeks," MCI's statement read.