Investment group Leucadia National Corp. is free to make a bid for MCI Inc. and has spent $245.9 million in acquiring a 4.96% stake in the carrier, which has just emerged from the world’s largest bankruptcy.
The New York-based company announced its ambition in July to acquire more than 50% of the MCI stock and, with no objections from regulators, it is free to make an offer for the MCI stock.
MCI currently has a stock market value of $5.27 billion and dwarfs the $3.6 billion valuation of Leucadia. However, Leucadia’s ability to squeeze value from a wide array of assets has ensured a steadily rising stock price that may make its paper more attractive than that of MCI.
Leucadia has interests in telecommunications, healthcare services, banking, manufacturing, real estate, winery operations, development of a copper mine and property and casualty reinsurance.
Its interest in telecoms began when it acquired WilTel Communications Group Inc., formerly Williams Communications Group Inc., as it emerged from Chapter 11 proceedings in 2003.