What happens with the minority shareholders?

You cannot fault Carlos Slim for trying to obtain as high a price as possible for his MCI shares. It is not his responsibility to obtain the best possible price for MCI shareholders, that is the Board's job.

What is amazing is that Verizon can pick off investors that interest them (those with a stake) and pay a different, higher price.

During my time in the UK markets when I knew a lot about the takeover code, companies had to offer ALL shareholders no less than the highest price paid to anyone over the previous 12 months. I believe that this is still the case today.

We saw maneuvers such as the Verizon/Slim one there as well, but only in order to get a hold of a strategic shareholding, not to do that at a special price and then offer the remaining shareholders a lower price.

Sounds like minority shareholders are taken care of better in the London Stock Exchange than in the US. I know where I would feel safer to invest!

OAM

Related links:
Verizon buys Slim's MCI stake (paid subscription required)
Verizon to buy Carlos Slim's MCI stake