2 corporate cultures meet in MCI-Worldcom merger

Article Abstract:

Cultural differences between MCI and Worldcom is a potential hurdle to their pending merger, according to analysts. Both telecommunications companies today will propose directors of the new company. MCI's board has a more traditional and corporate composition, compared to the Worldcom board staffed entirely by entrepreneurs, one observer said. Executives said the new company's 17-member board would consist of six officers from the combined corporation, eight outsiders appointed by Worldcom and three outsiders appointed by MCI. At least one of the proposed board members does not participate on either company's board. Shareholders are expected to vote overwhelmingly for the $37 billion pact, which was first announced in Nov 1997, but the agreement to merge will last for at least a few more months. European and US regulators, meanwhile, have widened their investigations into the deal's antitrust implications because MCI and Worldcom are two significant Internet traffic carriers.

Company acquisition/merger

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MCI-Worldcom match: How they'll fit, or won't

Article Abstract:

Worldcom and MCI management have clashed prior to Worldcom's recent $30 billion all-stock offer to acquire MCI. A deal approval would result in the departure of MCI Chmn Bert C. Roberts Jr., according to many analysts. Worldcom traditionally does not retain top executives from companies that it has acquired, such as MFS Communications. Some analysts wonder if Worldcom Chmn Bernard J. Ebbers would steer the combined companies into communications market segments that MCI has mostly ignored. A Worldcom-MCI contract dispute arose over the rates Worldcom would pay for MCI network line leasing. MCI prevailed in an intermediate court last winter, then temporarily disconnected telephone lines in Worldcom's Jackson, MS-based headquarters. Worldcom settled its differences with MCI for $41.5 million, according to former MCI and Worldcom officials.

Company Acquisition/Merger

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MCI and Worldcom set for Telefonica alliance

Article Abstract:

Telefonica de Espana plans to unveil an alliance with US carriers MCI and Worldcom, according to executives familiar with the companies' plans. Today's announcement would follow Telefonica's Apr 1997 move to jilt its first arrangement with AT&T in favor of Concert, an international group led by British Telecommunications. MCI, at that time a part of Concert, later joined Worldcom after British Telecom had pressured MCI to renegotiate their pending merger. This indicates Telefonica's interest in dealing with MCI all along. The US handles much of the international traffic from Telefonica communications companies in Argentina, Brazil, Chile, Colombia, Peru, Puerto Rico and Venezuela. Telefonica dominates the Spanish telephone market and ranks as the largest Latin American communications provider.

Contracts, Telefonica S.A., Contract agreement

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