3/31/2005

MCI still can't decide

Why is MCI having such a hard time deciding on what it is going to do? MCI has been getting great offers from Qwest, but still keeps thinking about settling with Verizon. Verizon's offer is 7.51 billion and Qwest's offer is 8.94 billion. I remember reading about this situation earlier, it stated that MCI was having a hard time settling with Qwest because of their finacial instability. Why do you think that this bidding has been going on for so long when MCI has basically made up its mind? Which company do you think that MCI should settle with?
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1 comment:

Dr. Tufte said...

I am starting to think the managers at MCI should be fired.

Rico's analysis is correct. The managers of MCI need to be thinking about shareholder value - and their shareholders get the best deal from Qwest. However, it isn't really relevent what the long-term prospects with Qwest are - those are already embodied in the value of the offer. Qwest is saying that they can see the long-run potential, and they have put the money on the table. Managers at MCI who do not take that deal are getting something on the side.

7:32 PM

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