The Fight Continues

MCI announced on Monday that it will not destroy its poison pill that limits any investor from owning more than 15 percent of its stock. This came as a surprise since Verizon decided to buy over 13 percent of MCI's stock over the weekend. This is an interesting decision by MCI management because it leads one to question if they truly want the merger with the favored Verizon Communications. This battle of bids for MCI has gone on long enough, yet it will continue until MCI can decide on who will be the successor of the firm. The poison pill, or amendment to stop one investor from taking over their company, is a very interesting tactic that is being used. Management has decided it wants to sell, but it keeps building up more barriers.

1 comment:

Dr. Tufte said...

Any time you see a poison pill, you should recognize this as a sign of entrenched management not acting in the interest of shareholders.

P.S. As of today (April 23) MCI has finally agreed to the Qwest offer.