NationStates Jolt Archive

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/04/12/cnmci12.xml&menuId=242&sSheet=/money/2005/04/12/ixcity.html
This may be the messiest merger of 2005. As you know, Verizon and Qwest have launched rival bids for ailing MCI. While offering a lower price to most shareholders, however, Verizon bought 13% of MCI from telecom magnate Carlos Slim at a higher price. Now, the shareholders are threatening legal action for this.
I remember when mergers were relatively clean and quick. Most notoriously, Procter & Gamble bought Gillette for $57 bn. But now I fear that we are going back to the dot-com mergers. Oh well.

Qwest has the better overall bid. Although in poorer financial shape, a merger would considerably improve their fiscal standing and improve their nationwide network.


As an owner of Qwest, the boost in its shares would be great as well. :)

Qwest has the better overall bid. Although in poorer financial shape, a merger would considerably improve their fiscal standing and improve their nationwide network.


As an owner of Qwest, the boost in its shares would be great as well. :)
I side more with Verizon on this one. My house is serviced by Verizon, as is my cell phone. Getting a long distance network would reduce the cost of a long distance call.

I side more with Verizon on this one. My house is serviced by Verizon, as is my cell phone. Getting a long distance network would reduce the cost of a long distance call.

It is much more difficult and time consuming for a Verizon-MCI deal to be approved, so that might hurt them in the long run, especially if legal challenges arise. I use Qwest for audio conferencing, so I guess I favor them more.

It is much more difficult and time consuming for a Verizon-MCI deal to be approved, so that might hurt them in the long run, especially if legal challenges arise. I use Qwest for audio conferencing, so I guess I favor them more.
It may be bad for them, but it will probably work out for me, the consumer. Still, I don't expect it to be like the AOL-Time Warner hookup.

It may be bad for them, but it will probably work out for me, the consumer. Still, I don't expect it to be like the AOL-Time Warner hookup.

I think that will go down as one of the worst mergers in recent history, if not of all time.

The Qwest-US West merger wasn't great either, especially given that it was based solely on false accounting.

Still, the merger might be good simply because it would save Qwest from collapse.

I think that will go down as one of the worst mergers in recent history, if not of all time.

The Qwest-US West merger wasn't great either, especially given that it was based solely on false accounting.

Still, the merger might be good simply because it would save Qwest from collapse.
I personally find corporate collapse a healthy part of business. It kills the weak and strenghtens the strong. That's why our economy is so successful.

I personally find corporate collapse a healthy part of business. It kills the weak and strenghtens the strong. That's why our economy is so successful.

True, but I'd make an exception in this case given that Qwest has 60,000 employees.

True, but I'd make an exception in this case given that Qwest has 60,000 employees.
However, if they collapse, it is likely that some network will take their place. Not all of the employees will be hired back, but most should be. Call me heartless, but hey, I've been called worse.

However, if they collapse, it is likely that some network will take their place. Not all of the employees will be hired back, but most should be. Call me heartless, but hey, I've been called worse.

That would be good, although not the best. Still, the long term health of the industry might create more jobs in the long run. Hopefully, they'll be in the US.

That would be good, although not the best. Still, the long term health of the industry might create more jobs in the long run. Hopefully, they'll be in the US.
And its health depends on cutting out the weak. At the very least, some one will buy out Qwest in the next few years. That would probably be sufficient to strengthen the industry.
It's possible to say, however, that I have a grudge for Qwest. Remember Frontier Communications? It was headquartered in my hometown, and built the first national fiber optic network. Qwest tried to buy it out. It eventually went to Global Crossings. It was a match made in Hell.