Qwest Makes ‘Final’ MCI Offer

Qwest Communications International Inc. submitted another offer for MCI Inc. on Thursday, increasing its cash-and-stock bid to $9.74 billion -- about 30% higher than the buyout deal that MCI has accepted from Verizon Communications Inc.

Qwest’s latest bid of $30 a share injects fresh uncertainty into the deal and could force MCI directors -- who have twice embraced Verizon over Qwest -- to accept a far higher offer.

The Qwest bid includes $16 a share in cash -- about $2.50 higher than the previous offer -- and $800 million in equity commitments from MCI shareholders, Qwest CEO Dick Notebaert said in a statement.

The remaining $14 would be paid in Qwest stock, based on an exchange ratio of 3.373 Qwest shares per MCI share. A guarantee to protect Qwest’s stock price remained in place.

The bid also includes an additional $1 billion in committed financing to ease concerns about whether the combined company would have the financial resources to compete, Notebaert said in a letter to MCI’s board.

The latest bid, described as Qwest’s “best and final,” will be withdrawn if it is not declared superior by 3 p.m. EDT on Saturday, he said.

The MCI board two weeks ago accepted a $7.5-billion cash-and-stock offer from Verizon, valued at $23.10 a share.

MCI shares rose 2 cents to $27.02, Qwest rose 7 cents to $3.61 and Verizon rose 48 cents to $34.26. All trade on the New York Stock Exchange.