Verizon Beats Qwest For MCI, Despite Lower Bid

from the aw,-why-not? dept

As was pretty much expected for the last week, Verizon has apparently won the bidding for MCI. Verizon, of course, is a much better buyer than Qwest, but that doesn't mean it's necessarily a good deal. Still, it's a bit surprising that Verizon (who seemed to make a half-hearted effort to win the deal in the first place) won by offering half a billion less than Qwest -- until you realize that Qwest equity is a bit risky, and doing a deal with Verizon is probably better in terms of long-term prospects. So, down goes yet another telco merger. Who's next?

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