Qwest has dropped out of the bidding war for rival telecoms operator, MCI.

Despite offering $30 or $9.75bn, MCI again refused to recommend Qwest. Instead they continued with Verizon's revised, but still lower bid of $8.45bn.

Qwest still has the option of re-entering the frame ahead of a shareholder vote at MCI.

MCI has always maintained that the Verizon bid offer was better strategically. Also the way the offers were structured presented less risk.

Although, Qwest is unlikely to enter the fray directly, it may still try to derail Verizon's deal via the regulatory route.

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