Verizon completes MCI buy

Verizon this week completed its $8.5 billion acquisition of MCI and formed a new unit focused on business customers.

Verizon is now a $90 billion company with 250,000 employees doing business in 150 countries. The carrier remains based in New York and its executive management structure and board of directors remains intact -- although Michael Capellas, former president and CEO of MCI, is leaving now that the merger has been completed.

Verizon Business is the name of the new unit. It includes the business and government customers and related functions of the former MCI, as well as similar businesses that previously were part of Verizon's Domestic Telecom operations, including the former Verizon Enterprise Solutions Group.

Verizon Business serves medium and large businesses and government customers, and it will announce details of new products and services later this month. As previously announced, John Killian has been named president of this new unit.

Verizon now operates three network-based businesses: Verizon Business; Verizon Wireless; and the carrier's landline segment.

Other segments of the former MCI are being combined with similar existing functions in Verizon, the carrier says. Integration planning has been underway since the merger was approved by MCI shareholders on Oct. 6, 2005.

Under terms of the merger agreement, MCI shareholders will receive 0.5743 shares of Verizon and cash for each of their MCI shares. Verizon said it elected to make a supplemental cash payment of $2.738 per MCI share, rather than issue additional shares of Verizon, so that the merger consideration was equal to at least $20.40 per share of MCI.

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