MCI Keeps Ownership Cap

washingtonpost.com Tuesday, April 12, 2005; Page E02

MCI's board of directors said it would not remove the "poison pill" provision that blocks a shareholder from owning more than 15 percent of the company's stock. The announcement came after New York-based Verizon Communications agreed to purchase 13.4 percent of MCI's shares from Mexican telecom magnate Carlos Slim Helu for $1.1 billion in cash. The provision prevents Verizon from being able to buy all of MCI by negotiating deals with other major shareholders. Verizon is trying to block Denver-based Qwest Communications International from getting enough shareholder support for a rival deal. Qwest released a statement saying that MCI's rejection of its latest offer is not consistent with shareholders' best interests.

Compiled from reports by the Associated Press, Bloomberg News, Dow Jones News Service and Washington Post staff writers.

Copyright 2005 The Washington Post Company

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