U.S. and European antitrust types worry that a combined MCI-Worldcom would control 60% of Internet backbone traffic.
Namely in a case involving MCI, about which I co-wrote a book, Stolen Without A Gun.
Many observers thought Verizon wouldn't even bother to make a bid for MCI because the company is doing well independently, and has done a good job organically growing its own corporate client list.
The resellers stoked growth at a time when MCI, lit up by the halo of the Internet frenzy, was prettying itself up for a sale to someone bolder.
Hilby could not be reached for comment, but in a deposition in the banks' suit against MCI, Hilby said he warned the carrier as early as October 1996 that he suspected a "conspiracy to defraud" MCI and its resellers.
Why not move up the food chain, acting, in effect, as a factor for MCI?
Verizon, in U.S. Senate testimony, labeled MCI a criminal enterprise--akin to a mafia clan--and urged liquidation.
Key to Qwest's takeover bid is the contention that a merger with MCI would lead to huge cost savings.
The campaign has already met with some success, leading a number of MCI stockholders to state publicly that Verizon's bid was too low.
On Wednesday, Verizon's Seidenberg eviscerated Qwest's efforts in a letter to MCI's board, pointing out Qwest's "junk" debt, "dim" prospects and "desperate" behavior.
The company has been successful in attracting a number of MCI shareholders to its cause, drawn by the bigger bid and promise of more cash up front.
Notebaert made three different offers for MCI, each one raising the bar higher above Verizon's initial bid, and worked hard to stir up a revolt among MCI shareholders.
In a statement, MCI (nasdaq: MCIP - news - people ) said it has accepted the new bid and that Verizon's (nyse: VZ - news - people ) superior competitive position makes it a more compelling partner than Qwest.
But MCI and Qwest are such a troubled pairing that many observers believed MCI Chief Executive Michael D.
Federal regulators launched a new investigation into whether MCI avoided paying access fees to American local telecoms carriers a few weeks ago.
And a group of creditors, who stand to lose if the action further damages MCI, say that the rivals are engaged in a deliberate smear campaign designed to drive customers away from MCI.
After the meeting a loan officer called MCI's switchboard to make sure Pavlo worked there, according to court documents.
But the company will have a hard time convincing MCI executives those factors weigh more than its financial problems.
As a sales rep at MCI in Boca Raton, Duffy had also been starting businesses and making investments since 1995.
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It was Mr Sullivan, for example, who had the idea of taking over MCI, a much bigger long-distance operator, in 1997.
That's how she grabbed a little business at MCI and Smith Barney.
But Notebaert has had a hard time convincing MCI's board and stockholders that Qwest's considerable debt and lackluster financials make it an attractive buyer.
Inmate number 52071-019, identified me as a former executive at MCI (later MCI WorldCom) that had participated in money laundering, wire fraud and obstruction of justice while working at the telecom giant.
So it was no surprise when MCI cut a deal with No. 1 U.S. regional carrier Verizon, even though it was worth about a billion dollars less than what Qwest had offered.
Daniel Akerson , a former president of MCI --now part of WorldCom--who is the current chairman of XO Communications , and Gary Forsee , vice chairman of BellSouth , have been mentioned, though it's not clear that either wants the job.
Despite the fact that Qwest's (nyse: Q - news - people ) new bid is 19% more than a competing offer from Verizon Communications (nyse: VZ - news - people ), it's likely to receive a chilly reception from MCI (nasdaq: MCIP - news - people ) execs.
The new offer also includes a clause that would protect MCI stockholders if Verizon's stock price drops.
And both parties get what they want at a discount price, since MCI's bankruptcy proceedings left it with relatively low debt.
How much in capital spending for a new souped-up MCI-Worldcom network?
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