Deja Vu MCI to Qwest International Inc: Can this Corporate Marriage Survive?
existing announce:
As of this lettering, the MCI slat of committee has given Verizon Communications Inc. one week to pacify their $7.5 billion deal, otherwise they have no variety but to accept Qwest Communications’ $9.74 billion deal to acquire MCI Inc. If the slat does not gather a answer deal from Verizon Communications by May 3, 2005, then it will endorse its shareholders poll for Qwest’s deal. From all accounts (Noguchi Washington advertise, 4/24/2005), Verizon is a durableer and more club crowd with $71.3 billion versus $13.8 in 2004 revenue, 210,000 employees versus 42,000. Qwest carries more than $17 billion in debt and it campaign to lower its outlay by $15 billion by keen 15,000 employees after the union while Verizon campaign to cut about 7,000 jobs.
The grill:
The grill is: Can Qwest Communications relax all system of successful unions and still survive? The energetic vigor behind Qwest’s acquisition is the 60-70 percent of MCI shareholders, which consists of enclose source investors (a group of super vivid investors) with a durable appeal in smart profit on their investments. because MCI just came out of marginruptcy, the margin creditors are not advanceing to profit with Qwest’s proposal to cut 17,000 jobs and it is advanceing to be very strenuous to keep key employees. When key employees advance for other companies it is greatly potential that patron examine will bear foremost many of them to change their examine providers. It is also potential that Verizon could use its monetary income to foster new networks to interest MCI’s corporate patrons located in the Northeast borough where it does concern.
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Posted on May 6th, 2008 by admin
Filed under: Hedge Fund
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