Posted by Todd Zywicki:
MCI Merger:
Interesting discussion by [1]Ribstein, [2]Bainbridge, and [3]Hurt on
the MCI-Verizon-Qwest merger dance.
I'm with Ribstein on this one--show me the money:
To echo my prior thoughts on this deal (see my post linked above,
and link back to earlier posts) this doesn�t make sense for MCI
shareholders. What they want is the best price they can get for
their stock. If they think, having gotten this price, that
Qwest-MCI is not the best investment for their portfolio, they can
sell it and buy something else. Unless winning the bid causes Qwest
stock to drop, the former MCI shareholders would have $4.00 more a
share with which to make their alternate investment.
In other words, look at current value, and put away the crystal
ball.
References
1. http://busmovie.typepad.com/ideoblog/2005/05/verizons_26_is_.html
2. http://www.professorbainbridge.com/2005/05/qwest_quits.html
3. http://www.theconglomerate.org/2005/05/mci_v_efficient.html
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