Notebaert not giving up

Qwest Communications added half a billion dollars to its offer for MCI, indicating it won't go quietly from the battle to acquire the long-distance player.

The new offer is $10.50 in cash and $15.50 in Qwest shares (subject to adjustment under a collar) per MCI share, or a total of $8.45 billion. MCI issued a statement saying its board of directors will respond to the new bid by close of business on March 28.

MCI accepted Verizon's offer of $20.45 per share, or about $6.65 billion, on Feb. 14. That offer includes includes $2 billion in cash, or $6 per MCI share. Verizon has not given an indication of whether it is willing to increase its offer.

Before issuing the new offer, Qwest Chairman and CEO Richard Notebaert released a statement that hit back at critics of his company's efforts to acquire MCI. Multiple industry analysts and consultants have said that a Verizon-MCI merger would be better in the long run for MCI, consumers and the telecom industry.

"Our activities over the next 24 hours will demonstrate our commitment to winning MCI," said Notebaert. "It is unfortunate that some in the process feel MCI shareholders should be deprived of the true value of their asset. MCI is a valuable property and shareholders deserve the present and future value that Qwest is committed to deliver. Historical commentaries serve no purpose as we look to the future of the communications sector and foster competition. The new company will be financially strong, with significant free cash flow, and offer investors a unique growth opportunity. Let fairness, economics and the best interests of shareholders decide this matter."