Merger mania in the telecom sector went into overdrive on Thursday, with reports that both Qwestand Verizonmay be eyeing MCI.
The Wall Street Journal reported that Qwest is in talks to buy MCI for $6.3 billion, while Verizon is in “exploratory talks” with the company, the paper reported.
Late in the day, TheStreet.com reported that Verizon was also kicking the tires at Sprint, as telcos scramble to keep up with the blockbuster merger announced Monday between SBCand AT&T.
Curiously absent from the rumor mill was BellSouth, which could get left behind if its Baby Bell siblings snap up the long-distance giants.
With their local phone dominance and ready customer base, the Bells wreaked havoc when they broke into the long-distance market, all but forcing AT&T and MCI out of the long-distance market and into the enterprise market. Now they appear poised to finish the job.
Stocks fell Thursday after Amazon.commissed earnings estimates and fourth-quarter productivity grew less than expected.
The Nasdaq fell 17 to 2057, the S&P 500 lost 3 to 1189, and the Dow slipped 3 to 10,593. Volume declined to 1.55 billion shares on the NYSE, and rose to 2 billion on the Nasdaq. Decliners led 17-15 on the NYSE, and 18-12 on the Nasdaq. Downside volume was 59% on the NYSE, and 73% on the Nasdaq. New highs-new lows were 249-18 on the NYSE, and 119-49 on the Nasdaq.
After the close, DoubleClickbeat estimates, and AskJeevesbeat earnings estimates but missed revenue estimates.
During the day, Amazontumbled 14% on its results, while CNETlost 14% on a warning.
Mercury Interactiveand Quest Softwaresurged on their results.
Alcateland BMCalso tumbled on their results.