October 6, 2005
MCI stockholders have given the green light to becoming part of Verizon. The proposed deal would create the nations second largest telecommunications firm.
The vote represents a major step in completing the merger. The companies are in the process of obtaining the remaining federal, state and international approvals. Both firms say the vote adds to the momentum for final closure of the transaction in late 2005 or early 2006.
"Todays vote brings us an important step closer to completing the MCI transaction," said Verizon Chairman and CEO Ivan Seidenberg.
"We look forward to creating a company that is better able to compete in todays large-business and government marketplace, invest in critical infrastructure and offer the nations most advanced broadband platform with next-generation multimedia services."
"This vote of support by our shareholders represents a key milestone in the merger approval process," said Michael D. Capellas, MCI president and chief executive officer.
The companies say the combination is part of the continuing evolution of the industry driven by customers and technology. The companies, naturally, see that as a good thing. Not everyone does.
Some consumer groups, as well as smaller telecommunications companies, worry that the Verizon-MCI merger, combined with SBC's proposed purchase of AT&T, will reduce competition in the local and long distance phone market. The predict that rates will go up, reversing a decade-long trend of falling prices for telecommunications services.
MCI was previously part of WorldCom, which scored both the biggest bankruptcy filing and the biggest accounting fraud in corporate history.
