MCI investors plan
By Dana Cimilluca, Bloomberg News
Rocky Mountain News
Friday, May 13, 2005
MCI Inc. shareholders who own at least 20 percent of the company plan to withhold votes for directors at next week's annual meeting to protest the board's decision to accept an $8.44 billion takeover bid from Verizon Communications Inc.
Omega Advisors Inc. and six other investment firms that together hold about 65 million of MCI's 325 million shares won't back the re-election of MCI's directors at the Monday meeting in Chantilly, Va., according to officials at the firms.
A hostile approach from Denver-based Qwest may need to come before MCI shareholders vote on the Verizon deal. There is no competing slate of MCI directors, so withholding votes for the current board is a symbolic gesture.