The battle for MCI takes another twist: now it's GTE's turn; a $28 billion all-cash bid from an unlikely source raises many possibilities: underestimating Mr. Lee
Article Abstract:
GTE made a $28 billion all-cash, or $40 a share, bid to acquire MCI. The stunning move pits GTE against Worldcom, which recently offered $30 billion of its stock, or $41.50 a share, for MCI. Worldcom is trying to overtake British Telecommunications' $18 billion deal to purchase the remaining 80% of MCI it does not already own. GTE Chmn and CEO Charles R. Lee is reversing his previous position of maintaining the Baby Bell's independence amid numerous deals in the telecommunications industry. the GTE offer, if accepted, would rank as the largest-ever cash takeover of a company. MCI stands second among long-distance carriers with a 20% share, compared with 60% for AT&T. GTE would position itself as a larger bundler of local and long-distance services if MCI accepts its offer. A GTE-MCI company would produce $45 billion in annual revenue, compared with AT&T's $52 billion.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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WorldCom boosts MCI bid to $36 billion; takeover battle heats up, as GTE studies ways to counter new offer
Article Abstract:
WorldCom Inc raises its MCI takeover offer by 20%, to about $36 billion, which amounts to $50 per share, up from $41.50. An industry observer says WorldCom's move is likely to cause MCI, which had offered $28 billion in cash for MCI, to increase its bid. An executive says a GTE offer of cash will be more attractive than WorldCom's stock deal. MCI, which is AT&T's main rival and owns local and Internet assets, is regarded by GTE as a particularly valuable prize. An MCI acquisition by GTE would mean GTE would get a $20 billion-a-year long-distance business, and at the same time, MCI would be eliminated as a competitive threat in local markets. In fact, MCI's expertise would benefit GTE in forthcoming battles with Bell companies and
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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- Abstracts: GTE joins bidding for MCI, offering $28 billion in cash; richest company battle; Worldcom deal for $30 billion is still highest, but that would be all in stock