British Telecom, outbid for MCI, is facing hard choices
Article Abstract:
British Telecommunications (BT) has not announced its response to Worldcom's $30 billion offer for MCI. BT, which has a standing $19 billion bid for MCI, said only that it was 'considering the issues.' Losing the MCI deal would leave BT without a partner in the huge US phone market as the industry increases its international reach. Investors believe BT has received an opportunity to sever its tumultuous relationship with MCI. The British phone giant can choose its response from at least three options, according to analysts and institutional investors. An improbable scenario entails purchasing MCI, especially since BT recently dropped its MCI purchase price by almost 25%. BT could extend its existing joint venture with MCI, as MCI provides international corporations with networking services. BT also could sell its current 20% stake in MCI for an expected $1.7 billion. That would allow BT to either divest itself of the US market or possibly target a new partner such as a regional Bell company.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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AT&T chief said to plan big job cuts; cost reductions may trim 15,000 positions
Article Abstract:
AT&T is expected to reduce its work force by around 12%, or some 15,000 employees, according to union leaders and senior company executives. Such a move would represent new Chmn C. Michael Armstrong's most significant move in reshaping the largest US telecommunications company as a slim, fast-moving operator. Armstrong, who has criticized AT&T's flabby management structure, wants the company to provide the lowest costs in the shifting telecommunications industry. Regulation and numerous corporate takeovers are creating industry turmoil, and AT&T seeks to increase investments in growth opportunities while remaining competitive with more efficient rivals. Senior management changes could accompany the job cuts, which AT&T is expected to announce on Jan 26, 1998.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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- Abstracts: British concern still seeks a partnership with MCI. AT&T chief seeks to calm rank and file, via video
- Abstracts: International economic outlook: developments and outlook of the European countries in transition. Hard landing in NAFTA and solid growth in the enlarged European Union
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- Abstracts: AT&T's operating profit rose 12% in third quarter. AT&T's quarter meets (lowered) expectations; surprisingly, the company's troubles are in core businesses
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