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Report: Verizon makes informal offer for MCI

By Martyn Williams , IDG News Service , 02/10/2005
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Verizon has made an informal bid for MCI, according to a report in the Thursday edition of the Wall Street Journal .

The bid was made as part of talks between the two carriers and doesn't represent a firm offer, the newspaper said, citing "people familiar with the situation." Discussions are still under way between the two carriers and have become "meaningful" in recent days but they could fall apart, it said. While the report didn't quote a price, it said the deal is close to a $6.3 billion offer recently made by Qwest .

News of the deal comes just over a week after SBC said it plans to acquire AT&T in a deal worth $16 billion.

That deal, which will create the largest telecommunications carrier in the U.S., was viewed by analysts as the possible start for a series of mega-mergers in the telecommunications industry. In addition to speculation regarding MCI, Verizon and Qwest, some analysts also speculated about plans that BellSouth and Sprint might have for a deal with a competitor or each other.

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