Verizon To Aquire MCI For $6.7 Billion

Verizon Communications Inc. has agreed to acquire MCI Corp. for more than $6.7 billion. This represents the third big telephone merger in three months.

Verizon Communications Inc. has agreed to acquire MCI Corp. for more than $6.7 billion in a deal that snatches the once-troubled long-distance provider away from a rival bid and represents the thirdbig telephone industry merger in two months.

Under terms of the deal, Verizon will pay $5.3 billion in stock and cash for MCI’s shares. In addition, Verizon will pay MCI shareholders dividends of worth $1.463 billion.

Verizon is also assuming MCI’s debt of about $4 billion, and estimates that the acquisition will yield about $7.0 billion in added revenue and operational savings.

Read more at InformationWeek

Source: Associate Press