Looks like I'm merger-blogging again.
The consolidation of the telecommunications industry continues. The Wall Street Journal (along with just about everyone else) just announced MCI's acceptance of Verizon's $6.8 Billion offer. According to several accounts, At least a few MCI executives preferred Verizon's offer over a slightly larger one by Qwest Communications ($7.3 billion ) because of Verizon's stronger financial position.
The acquisition of MCI is kind of ironic, since it was (way back in the day) one of the first to bring independent competition to the long distance market in the wake of the AT&T breakup.
Now, the industry is undergoing more change with challenges from cell-phone providers and even internet phone service from technologies like VOIP.
In any event, it looks like we'll be talking in class about mergers again - medium of payments, the role of the board in multiple bidder contests, the likelihood of synergies, managers' vs. shareholders' preferences, and so on.
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