Is Verizon Heading South?

AT&T's planned purchase of BellSouth leaves Verizon in a distant second place in U.S. telecom. Does it need to bulk up in response?

Last year, Qwest Communications (Q) became an expensive thorn in the side of Verizon (VZ) when it sparked a bidding war for MCI. Verizon eventually bought MCI, but not before competition from Qwest jacked up the price by more than $1 billion. Now, in the wake of AT&T's (T) proposed $67 billion BellSouth (BLS) takeover, some telecommunications watchers are wondering if Verizon is going to pull a Qwest on AT&T and launch a hostile bid for BellSouth.

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