Bloomberg

Qwest Communications International Inc., seeking to outbid Verizon Communications Inc. for MCI Inc., sweetened its $8 billion cash-and-stock offer by giving MCI shareholders a hedge against falling share prices.

Under the revised offer, MCI shareholders also will get more cash before the deal closes than in the previous plan, Denver- based Qwest said today in a regulatory filing. MCI, the second- largest U.S. long-distance telephone company, spurned Qwest's earlier proposal and accepted a $6.75 billion bid from New York- based Verizon.

The new offer heightens pressure on MCI Chief Executive Officer Michael Capellas to revisit the deal. Verizon, the largest U.S. telephone company, may be pressed to sweeten its own terms, said Legg Mason Wood Walker Inc. analyst Daniel Zito. Some of MCI's biggest investors have said Ashburn, Virginia-based MCI is worth more than Verizon plans to pay.
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