MCI Rejects Qwest Offer

MCI Inc. late Tuesday rejected an $8.9-billion buyout proposal from Qwest Communications International Inc., opting instead to stick with a $7.5-billion offer from Verizon Communications Inc.

Qwest said it would evaluate the situation before deciding its next move. “We are weighing our options, and shareholders will dictate the next steps in the process,” Qwest spokesman Steve Hammack said. “MCI’s board of directors has chosen to reject what we believe is a superior offer to acquire MCI.”

A call seeking comment from MCI was not returned.

Qwest previously had said it would hold MCI to a midnight deadline. Qwest Chief Executive Richard Notebaert had told MCI’s board in a letter that he would leave the offer on the table if MCI notified Qwest by midnight and publicly declared the bid superior to the Verizon offer no later than noon EDT today.

Qwest issued the deadline to MCI last week when it raised its bid by nearly $500 million to $8.9 billion.

The news was announced after markets closed. MCI fell 7 cents to $25.01 on Nasdaq. Qwest rose 4 cents to $3.86 and Verizon gained 12 cents to $35.77 on the New York Stock Exchange.