As MCI changes hands, a gadfly buzzes off

Article Abstract:

MCI, the company that took on the AT&T communications juggernaut, has now joined with British Telecommunications (BT) to form Concert, whose $70 billion market valuation is more than AT&T's. MCI will have many more resources and opportunities as part of an enterprise ranked sixth in the world in terms of profits, but changes within the company have already begun. MCI filed the antitrust lawsuits that helped bring down AT&T's monopoly over virtually all local and long distance service, worth over $100 billion in annual revenue. MCI's founder, the late William McGowan, gave the company a unique, irreverent spirit and a gritty, competitive business intelligence that has characterized the company's advertising, official functions and deregulation efforts. MCI is trying to preserve its image as the telecommunications industry rabble-rouser and price-slasher, while using BT's backing to build a global presence.

Antitrust law, Company analysis, Antitrust Issue

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WorldCom bid leaves MCI few options: sweeter terms than BT's make unsolicited offer hard to resist

Article Abstract:

MCI may face few options other than evaluating WorldCom's unsolicited $30 billion takeover bid. Accepting the WorldCom offer would offer short-term advantages. First, MCI shareholders would receive significantly more value than British Telecommunications' (BT) renegotiated $21 billion deal. Another MCI benefit would result in access to existing local network and Internet facilities worldwide. MCI, whose executives have gathered to evaluate the WorldCom offer, is in a delicate situation. Rejecting WorldCom could trigger a legal and shareholder battle at an inopportune time for MCI. Increased competition is revolutionizing the telecommunications industry, while rival AT&T is experiencing difficulties. BT could retain a 10% share in the WorldCom-MCI deal, but severing the BT-MCI alliance would be complicated.

Telecommunications, Telephone Communication, WCOM, MCI Inc.

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GTE planning to buy BBN, Internet pioneer

Article Abstract:

GTE is planning to acquire Internet pioneer BBN for an undisclosed amount. Analysts rate BBN's current market value at more than $450 million and GTE is expected to pay between $500 million and $1 billion for the acquisition. GTE has been able to take advantage of its unique position in the communications industry of not having any legal restrictions on its expanding beyond local phone services. With more than one million customers, GTE is country's largest local phone company. Many of the company's customers have been lured away from AT&T, and this acquisition of BBN will prove to be another blow to AT&T. BBN played an important part in building the modern Internet, and since June 1995 has been under contract with AT&T to provide most of the company's Internet service.

GTE Corp., GTE, BBN, BBN Corp.

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