Verizon may walk away from MCI deal

NEW YORK — Verizon threatened Monday to abandon its $7.5 billion buyout deal for MCI Inc. rather than pay more should the long-distance telephone company declare a rival $8.9 billion offer from Qwest as superior.

MCI’s shares fell sharply after the announcement, which came one day before a deadline set by Qwest Communications International Inc. for MCI to accept or reject its bid.

In a statement, Verizon Communications Inc. said, “If the MCI board, capitulating to Qwest’s artificial deadline, declares this bid to be `superior,’ it would seem to us that the decision-making process is being driven by the interests of short-term investors rather than the company’s long-term strength and viability.”

“Should this occur, we would no longer be interested in participating in such a process,” the statement warned.

Shares of MCI were down 28 cents, or 1.1 percent, at $25.01 in afternoon trading on the Nasdaq Stock Market despite rising as high as $25.50 earlier in the session amid hopes the bidding will produce a higher takeover price.

Verizon’s shares jumped 48 cents, or 1.4 percent, to $35.67 on the New York Stock Exchange. Qwest rose 17 cents, or 4.7 percent, to $3.81, on the NYSE.