Qwest Seeking Verizon-MCI Opposition

Just when you thought it was over, the fight for MCI may just be getting started. The Wall Street Journal reported on Monday that shareholder dissent is high over the board's decision to accept Verizon's latest proposal, even though it is $1.3 billion less than Qwest's "final offer."

The WSJ cited unnamed sources saying that Qwest is talking with shareholders and believes that there is enough opposition to the deal, which may prevent it from going through when it comes to a vote early this summer.

Two major shareholders of MCI have already contacted Qwest and have asked for the company to reconsider its decision. However, Qwest has apparently not decided if a re-entry into the bidding war is in its best interest, and is still "testing the waters" according to one major shareholder.

Verizon acquired a 13 percent stake in MCI through a transaction with Carlos Slim Helu, a Mexican billionaire. Verizon agreed to pay Helu $25.72 a share, which at the time was greater than its offer of $23 a share to MCI shareholders.

This move angered many shareholders, spurring further opposition to Verizon as an eventual suitor.

According to the WSJ, the number of shareholders opposed to the merger far outnumber those who support it, meaning that it could be very hard for a deal to close with Verizon due to lack of shareholder support.

It is unclear exactly how Qwest plans to proceed, as a spokesperson told the paper that it was pursuing other options in the marketplace. However, the spokesperson said that the company is "keeping its options open."