Tuesday, February 15, 2005
Looks like Verizon doesn't want to let SBC be the only RBOC to be in the aquisitions game
Verizon to Acquire MCI for $5.3 Billion in Equity and Cash
Source: PR NewswireDate: February 14, 2005
Verizon to Acquire MCI for $5.3 Billion in Equity and Cash Acquisition Ensures Strength of Internet Backbone Network, Enhances Verizon's Ability to Serve Large Business and Government Customers - MCI to Also Pay Special Dividend, for a Total Value of $6.7 Billion
NEW YORK, and ASHBURN, Va., Feb. 14 /PRNewswire/ -- Verizon Communications Inc. (NYSE: VZ) and MCI, Inc. (Nasdaq: MCIP) today announced that Verizon has agreed to acquire MCI for $4.8 billion in equity and $488 million in cash.
The transaction adds new strength to the telecommunications services both companies provide. It ensures that consumers and businesses will have a supplier with the financial strength to maintain and improve MCI's Internet backbone network, which is the largest in the world based on company-owned points of presence.
The transaction will also mean better service for Enterprise customers by enhancing Verizon's ability to compete for and serve large-business and government customers with a complete range of services, including wireless and the most sophisticated IP (Internet Protocol) based services.
The Boards of Directors of both companies have approved the agreement.
MCI shareowners will receive 0.4062 shares of Verizon common stock for each common share of MCI. This is worth $4.795 billion and equivalent to $14.75 per MCI share, based on Verizon's closing price on Friday, Feb. 11.
MCI shareowners will also receive $1.50 per MCI share in cash, worth $488 million. This consideration is subject to adjustment at closing and may be decreased based on MCI's bankruptcy claims-related experience. more...
I wonder who is going to be next in the buy, sell, merger game? Looks like things are heating up.
