Deephaven Cap Files
Second Solicitation For MCI Proxies
Dow Jones Newswire
Saturday, July 16, 2005
WASHINGTON -(Dow Jones)- Deephaven Capital Management LLC, a unit of Knight Trading Group Inc., filed a second solicitation of proxies from shareholders of MCI Corp. to vote against MCI's proposed merger with Verizon Communications.
Deephaven of Minnetonka, MN, a manager of several funds that beneficially owned 16 million shares of MCI as of June 13, said in a document filed with the Securities and Exchange Commission Friday that it continues to believe that the proposed $26-a-share deal with Verizon isn't in the best interests of MCI holders because the proposed merger provides less total consideration to MCI shareholders than the last offer made by Qwest Communications International Inc. for MCI.
Qwest's $30-a-share offer for all outstanding shares of MCI was rejected by MCI's board in May.
In June, Deephaven announced a solicitation of proxies seeking holder opposition to the proposed merger in an effort to get Qwest back in the ballgame as a bidder for MCI.
Deephaven representatives weren't immediately available to provide additional information.
-By Chad Clinton, Dow Jones Newswires; 202-862-1349; firstname.lastname@example.org