In recent weeks, MCI has spurned Qwest's merger offers, choosing instead to stick with a lower bid from Verizon .

That finally ended this weekend.

The Ashburn, Va., long-distance and network services provider deemed Qwest's $9.7 billion cash and stock proposal superior to Verizon's $7.6 billion plan -- something that was obvious to many MCI shareholders.

But it's unlikely Qwest has heard the last of Verizon. Under an earlier agreement with MCI, Verizon has five business days (through Friday) to respond with a revised offer.

"In light of the change in this process, we will consider all of our options and determine how best to serve Verizon shareholders," Verizon said in a statement.

The New York carrier also noted that its previous pact contains a break-up fee. If MCI bails on Verizon, it will have to pay the Baby Bell a $240 million fee.

Although it tried to avoid a bidding war, Verizon has made it clear it's serious about purchasing MCI. For example, when MCI's largest shareholder balked at the per-share offer, Verizon negotiated a higher price to gain his 13 percent stake in MCI. The end-around chaffed some MCI shareholders.

Qwest and Verizon covet MCI because of its large IP data-service deals with government agencies and corporations. And with the pending merger of SBC and AT&T, neither wants to be left behind by the wave of industry consolidation.

The Baby Bells consider those long-term, high-margin contracts crucial to their future prosperity, as cable operators, VoIP upstarts and wireless carriers try to hone in on their traditional businesses.

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