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Verizon Raises MCI Bid to $8.5 Billion. 2005-05-02, HostMan.biz Verizon (verizon.com) has raised its offer for Internet service and Web hosting provider MCI (mci.com) to $8.5 billion, a bid the company says is superior to that of rival Qwest Communications (qwest.com). Last week's acquisition offer by Qwest, worth a reported $9.7 billion, was deemed by MCI to be superior to Verizon's standing offer of $7.6 billion. Qwest had made several acquisition offers in the last few months, all which were rejected by MCI. "From the standpoint of risk versus reward, Verizon's revised offer presents MCI with a stronger, superior choice," says Nicholas Katzenbach, chairman at MCI. "Shareholders receive enhanced value with greater assurance that the transaction will create additional shareholder value." Most of MCI's enterprise customers prefer a Verizon takeover, with reports indicating that some would leave should Qwest succeed in its acquisition attempt. Both Qwest and Verizon covet MCI because of its large base of government and large business customers. Qwest has made a concerted effort to acquire MCI because of its concerns that it would have difficulty remaining independent as the telecom industry continues to consolidate, analysts say. SBC Communications acquired AT&T earlier this year.

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