As MCI fight grows, the Wall St. entourage builds
Article Abstract:
Top Wall Street financiers and lawyers are entering the multibillion-dollar competition to acquire MCI. The development heightens the industries' presence in counseling large acquisitions and mergers. Lazard Freres guided MCI, and Salomon Brothers counseled Worldcom. N.M. Rothschild, Morgan Stanley, Dean Witter, Discover advised British Telecom's (BT) proposal earlier in 1997. Investment banks and financial advisers worldwide generate estimated revenues of $700 billion and $1 trillion of market capitalization. Investment bankers who engineer successful deals probably will charge more than $30 million, and MCI's financial advisers will earn several million dollars. Other firms will draw fees of a few million dollars. Big law firms also are profiting from the MCI activity, as Simpson Thacher & Bartlett is guiding MCI. Cravath, Swaine & Moore advises Worldcom, while Shearman & Sterling counsels BT. Insiders say O'Melveny & Myers and Fried, Frank, Harris, Shriver & Jacobson are collaborating with GTE.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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S.E.C. asks MCI for documents on Milken role
Article Abstract:
The SEC has asked MCI to turn over all documents concerning the investment and financial advice it received from former financier Michael R. Milken, a sign that the regulatory agency has begun an official investigation into Milken's activities. Milken is bound by a 1990 order to refrain for life from associating with mutual securities dealers, investment counselors, brokers and dealers. The limits of the agreement are not clear, and some argue that it prevents Milken from entering into any transaction that could affect the price of securities. Despite the decree, Milken has begun offering advice to a number of executives, including MCI Chmn Bert C. Roberts Jr., whom Milken introduced to Rupert Murdoch, advising Roberts to invest some $2 billion in Rupert's News Corporation. Milken's attorney Richard V. Sanders contends that Milken is in compliance with the terms of the SEC decree and that Milken warns clients that his involvement will provoke scrutiny.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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From wimp to kingmaker in battle for MCI
Article Abstract:
British Telecommunications (BT) has an opportunity to influence the bidding to acquire MCI. BT's offer to acquire MCI has been topped in Oct 1997 by Worldcom and GTE, but BT still holds considerable financial influence. BT is the largest MCI shareholder, with a 20% stake, and three seats on the MCI board. This enables BT to pit Worldcom against GTE and earn a profit. A Worldcom victory would raise US business customer presence, from BT's perspective. Some observers, however, say Worldcom Chmn Bernard J. Ebbers' unorthodox attitude may portray Worldcom as an outsider. GTE appears to hold the advantage for BT approval, with GTE Chmn Charles R. Lee adopting a more solicitous approach toward BT and MCI. GTE's infrastructure may better meet the BT goal of developing a partnership with US companies that hold an important international presence. GTE already has significant holdings in Latin American wireless and local telephone companies.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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