I have to agree that the Qwest/MCI venture would be a much better fit for both companies. I am rooting for Qwest!
CANUHEARME NOW?
how are long term shareholder interests (of MCI shareholders) served? Obviously Quest is helped as otherwise still mere bankruptcy material while Verizon has been pumping the past few years' profits into their balance sheet, reducing billions in debt and recently increasing their dividend.
Short term more money is better. It is an open question what Quest will be worth 5 years after the purchase. If I was Verizon, I'd let Quest make the purchase, hope they choke on it, and then try to grab all of Quest at a lower overall cost in a couple of years. Long term you are probably going to be down to two major players nationwide. SBC and Quest.