MCI accepts offer of $36.5 billion; deal sets record: Worldcom wins bidding; Mississippi upstart beats out British and American rivals for No.2 phone carrier

Article Abstract:

MCI has announced it will be acquired by Worldcom for approximately $36.5 billion in cash in stock, making history as the America's largest business merger ever. MCI choose Worldcom over GTE's $28 billion bid and British Telecommunications' (BT) $19 billion bid. BT has agreed to sell its 20% share in MCI to Worldcom for close to $7 billion. The acquisition is thought to be a direct result of the Telecommunications Act of 1996, which was designed to deregulate the communications industry, but has brought about numerous consolidations and mergers within the industry. The acquisition must be approved by the shareholders of both MCI and Worldcom as well as by the FCC and Justice Dept. Worldcom's shares feel $2.1875 to $30.9375 when the deal was announced, while MCI's shares rose $4.625 to $41.50. MCI Chmn Bert Roberts was reportedly swayed by the offer to chair the combined companies and secure senior management positions for his executives.

Company acquisition/merger, WCOM, MCI Inc., MCI Communications Corp., MCIC

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Excel agrees to buy Telco for $1 billion; deal would create big long-distance player

Article Abstract:

Excel Communications is purchasing Telco Communications Group for $1 billion in stocks and cash. The acquisition will ensure Excel's position as one of the country's biggest long-distance telephone companies. The acquisition will result in Excel having a yearly revenue exceeding $1.5 billion and make the company responsible for 6.3 million customers. Both Telco and Excel currently focus mainly on residental customers, however after the acquisition, they hope to make gains in the business market. The announcement of the acquisition prompted both companies' stock prices to rise; Telco by $3.875 to $25.875 and Excel's by $2 to $20.75. The companies hope to gain the approval of the FCC and close the deal by the end of 1997.

Long distance telephone services, Long-distance telephone service, EXCEL Communications Inc., Telco Communications Group Inc., Company Acquisition/Merger, TCGX, ECI

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