Market consolidation: In the US, the consolidation serial story continues. After some MCI shareholders have complained about the (low) price Verizon should pay the MCI purchase and tried to block the $6.7bn takeover, Qwest submitted a revised bid. Without changing the total value of the bid ($8bn), Qwest changed the cash/stock mix in order to give MCI shareholders more compensation and guarantees. The new proposal includes $9.1 in cash and $ 15.5 in Qwest stock, with a collar to protect MCI shareholders from any drop of more than 10% in Qwest's stock price. In addition, MCI shareholders should retain about 40% of the new entity (opposed to only 5% in Verizon/MCI merger case). Qwest also advocates the Qwest/MCI deal should pass regulatory hurdles much easier than the competitive deal. Will it be enough to make MCI turn now their eyes to Qwest?
