ON THE NEWS IN JULY THAT NEW YORK INVESTMENT FIRM LEUCADIA NATIONAL CORP. PLANNED TO FILE A REQUEST WITH THE FEDERAL TRADE COMMISSION AND THE DEPARTMENT OF JUSTICE SEEKING PERMISSION TO ACQUIRE A CONTROLLING INTEREST IN MCI.
“Leucadia’s bid for MCI underscores a larger trend toward industry consolidation.
Other potential acquirers likely will surface if the Leucadia bid fails.”
- Gartner analysts
“Leucadia’s announcement may hasten a decision from Verizon as to its intention: Does it go after MCI and get in a bidding war or does it turn its sights on AT&T, a bigger and better managed company?”
- Probe Group COO Allan Tumolillo
“Given only a moderate degree of potential synergy between MCI and Leucadia’s telecom business … we believe the prime motivation for a Leucadia bid would be either a more bullish outlook for MCI than the market, or a belief by Leucadia that it could harvest MCI’s business for greater near-term cash return than current management’s long-term investment strategy may imply.”
- Credit Suisse First Boston analysts