MCI is selling wholesale Internet unit, but European trust issues may remain

Article Abstract:

MCI acknowledged selling its wholesale Internet business to Britain-based telecom company Cable & Wireless for $625 million in cash. It is unclear whether the deal will placate European antitrust regulators, who have threatened to reject a proposed $37 billion MCI-WorldCom merger amid concerns that the combined companies would control more than 50% of the Internet backbone. Competitors including GTE blasted MCI's deal with Cable & Wireless, saying it did not sufficiently reduce the Internet threat. Other conditions of the latest agreement call for MCI to sell its Internet hardware and 1,300 Internet access reseller worldwide, as well as transferring 50 employees. MCI will retain some of its Internet business that also services its traditional long-distance customers, including its billing and customer service centers. Rivals instead wanted WorldCom to sell its prized UUNet Technologies, the Internet subsidiary that is several times larger than MCI's Internet business.

Telecommunications, Company acquisition/merger, MCI Communications Corp., MCIC, Cable & Wireless PLC

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MFS to buy Internet player UUNet for $2 billion

Article Abstract:

MFS Communications Company is acquiring UUNet Technologies for approximately $2 billion in a move designed to provide the combined company with the necessary leverage to compete with long-distance companies and the regional Bell operating companies. MFS provides corporations with access to long-distance phone networks and internal telephone links. The company will use the Internet access technology it is obtaining from UUNet to provide corporations with complete Internet, local and long-distance telecommunications solutions. The combined company is also likely to research the technology behind providing data, audio and video communications across the Internet at a greatly reduced cost to consumers. Analysts are enthusiastic about the prospects of the merger's ultimate success.

Company Acquisition/Merger

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UUNet options sales before pact are studied

Article Abstract:

The Chicago Board Options Exchange (CBOE) is investigating the securities trading that occurred surrounding the Apr 30, 1996 announcement of a $2 billion merger between UUNet Technologies and MFS Communications Company. UUNet stocks rose 8% in unusually heavy trading of company options the day before the deal was disclosed to the public, and CBOE officials are expected to turn any evidence of insider trading over to the US Securities and Exchange Commission. Officials of both UUNet and MFS refuse to comment on the inquiry, and there is question about whether the heavy trading activity was related to a quarterly earnings report that was expected but postponed on the day of the merger.

Investigations, Securities, MSFT, United States. Securities and Exchange Commission, Chicago Board Options Exchange Inc., Stock markets, Stock Market, Investigation

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