May 03, 2005
Qwest's Quest Ends
Posted by Christine Hurt

Prof. R. and Prof. B continued to debate whether the MCI board missed the boat by choosing Verizon ($26/sh) over Qwest ($30/sh).

Larry points out that the bidding merely resulted in a wealth transfer from Verizon to MCI's shareholders, which could hardly benefit Qwest.  If would-be bidders get no benefit from bidding, then they will think twice about launching such a mission again. 

However, Qwest may get a benefit.  If you could think of a way to make your competitor lose about $1.75 billion, you might be willing to make that happen.  If Qwest had not entered the fray, Verizon would have paid $6.75 billion for what it will now pay $8.44 billion.  I'm not saying that this was Qwest's goal all along, but it is a silver lining.  I think Prof. B noted that if Qwest had been seriously pursuing MCI that Qwest could have at least launched a proxy contest, given the MCI poison pill.  However, as readers have pointed out to me, the MCI poison pill was completely chewable.  If Qwest had a majority of non-Qwest shareholders, it could have launched the tender offer at any time.  Hmmm.

M&A | Bookmark

TrackBacks (0)

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8345157d569e200d83510805253ef

Links to weblogs that reference Qwest's Quest Ends:

Comments (0)
Post a comment

If you have a TypeKey or TypePad account, please Sign In

Bloggers
Papers
Posts
Recent Comments
Popular Threads
Search The Glom
The Glom on Twitter
Archives by Topic
Archives by Date
January 2019
Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31    
Miscellaneous Links