Qwest Dons Collar for MCI

Updated from Feb. 24

Qwest (Q Quote) turned up the heat on MCI (MCIP Quote) Thursday, following through on an oft-made threat to raise its bid for the long-distance telco.

Qwest modified the terms of its $8 billion cash-and-stock offer for MCI in a second attempt to derail the pending deal between MCI and Verizon (VZ Quote).

In a letter to MCI's board of directors Thursday, Qwest said it would adopt a so-called collar that guarantees MCI $15.50 in Qwest stock for each MCI share. Qwest also accelerated the cash payment to shareholders immediately following an approval vote. ...