Cable & Wireless drops MCI suit, giving WorldCom deal a boost
Article Abstract:
Cable & Wireless's withdrawal of its lawsuit against MCI removes a hurdle for WorldCom to obtain regulatory approval of its proposed merger with MCI. The C&W lawsuit, filed in federal court in Washington, claimed that MCI was poised to dissolve its $625 million Internet assets sale to C&W in favor of placing its entire business up for sale. C&W changed its mind following mid-Jul 1998 discussions between its chmn, Richard Brown, and MCI Chmn Bert C. Roberts Jr. The lawsuit complicated the $37 billion WorldCom-MCI merger, which has triggered European antitrust regulator concerns over its Internet dominance. MCI changed its sales tactics after the European regulators had indicated that its deal with C&W was insufficient. European regulators have established a Jul 15, 1998, deadline for approving the merger. MCI said it has not struck a deal with regulators.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Holders clear deal of MCI, WorldCom
Article Abstract:
Stockholders at both companies have enthusiastically endorsed Worldcom's proposed acquisition of MCI. Such a merger would create an international telecommunications company with 22 million customers and annual revenues of $32 billion. Regulatory approval is not yet certain, and in fact, the DOJ has broadened its investigation of the proposal. Even so, investors remain optimistic. WorldCom and MCI officials are also optimistic, saying they expect the deal to close in mid-1998. The companies have already released the names of the directors who would comprise the combined organization's 17-member board. In Nasdaq trading on Mar 11, 1998, WorldCom closed at $38, up 12.5 cents, and MCI closed at $45.875, down 12.5 cents.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Many doors to Microsoft's new Windows. Microsoft adding to Java and to Sun rift. Microsoft sees a major shift for computers
- Abstracts: Iridium phone project maps an upscale orbit. ICO files to sell initial offering of stock, notes
- Abstracts: TCI in talks over new cable-TV boxes: Microsoft, Intel are among the suppliers pursuing the potential $3 billion pact
- Abstracts: Computer Sciences opens door to sale while rejecting CA's $9.18 billion bid. Computer Associates opens hostile bid of $9.18 billion for Computer Sciences
- Abstracts: Excite, a Web directory service, in a 2-year deal with Netscape