QWEST DIRECTORS HAVE DISCUSSED RENEWING THEIR BID TO BUYMCI

Qwest Communications International Inc. directors discussed renewing a takeover bid for MCI Inc. at a board meeting yesterday, five months after conceding to

Verizon Communications Inc., people familiar with the matter said. The talks were prompted by efforts by hedge fund Deephaven Capital Management LLC to encourage other MCI shareholders to vote against a takeover offer from Verizon, said the people, who asked to remain anonymous. Shareholders of MCI, the No. 2 U. S. long- distance telephone company, are scheduled to vote on the takeover on Oct. 6. Qwest, the No. 4 U. S. local-telephone company, would only renew an offer if Verizon is rejected by shareholders at the MCI meeting, one person said. Qwest chief executive Richard Notebaert dropped the bid after MCI chose an US$8.44-billion deal with Verizon, the largest U.S. local-phone company, over the US$9.75-billion offer from Denver-based Qwest. “We ended our pursuit of MCI last May, but we did say we’d continue to monitor the situation,” said Qwest’s spokesman Tyler Gronbach. If MCI shareholders vote down the Verizon deal, “Qwest would consider its options,” he said. MCI spokesman Peter Lucht declined to comment. “ The only vote that matters is the one” on Oct. 6, said Verizon spokesman Peter Thonis. “ We have a compelling offer on the table.” Verizon is “confident that shareholders will recognize the value inherent in our offer,” he said.