NEW YORK (CNN/Money) - Qwest Communications International Inc. boosted its takeover bid for MCI Inc. to $7.3 billion but rival bidder Verizon Communications Inc. also adjusted its offer, a news report said Sunday.

Denver-based Qwest (Research) presented the formal cash-and-stock offer over the weekend, The Wall Street Journal reported Sunday on its Web site.

Last month, Qwest offered about $6.3 billion to acquire MCI (Research), which then received a similar offer from New York-based Verizon (Research).

Board members of MCI were briefed Saturday on both bids, the Journal report said, citing people familiar with the situation. Verizon board members were briefed before the weekend and were ready for a board vote, if required, the report added.

The fight over MCI is especially important since it's one of the last remaining big, independent telecommunications companies.

Just two weeks ago, Baby Bell SBC (Research) agreed to buy AT&T (Research), its former parent informally known as Ma Bell, for $16 billion in cash and stock. Sprint Corp. (Research) agreed to buy Nextel Communications Inc. for $35 billion in December.

Qwest's new offer is worth about $23 a share versus Verizon's original bid of about $20, the report said. MCI closed Friday at $20.75, up 1.4 percent, on Nasdaq as investors bet a bidding war might erupt.

It was not clear which parts of its offer Verizon adjusted, the report said, quoting people close to the situation, who added that Verizon is unlikely to engage in a protracted bidding war.

The purchase of MCI would mark the end of an era in long-distance service.

Long before it was acquired by WorldCom Inc. in 1998, MCI helped establish competition in the telecom industry as the first real challenger to the AT&T long-distance monopoly.