MCI board agrees to closer look at Worldcom's unsolicited bid

Article Abstract:

MCI's board has instructed its bankers and lawyers to study Worldcom's acquisition offer presently valued at $33.9 billion. The move indicates MCI's possible interest in escaping its $19 billion acquisition deal with British Telecommunications (BT). MCI has selected investment bank Lehman Brothers as a new financial adviser, which may suggest MCI's wish to take another direction. Lehman Brothers joins Lazard Frerers, which advised MCI during the BT negotiations. A thorny issue is MCI's potential $450 million breakup fee to BT in case the existing deal fails. MCI still plans to hold Dec 1997 shareholder meetings in which stock owners will vote on the BT bid. The 14-member MCI board, which includes three members designated by BT, gathered for the first time since Worldcom's surprising Oct 1997 offer.

Telecommunications, Telephone Communication, Mergers, acquisitions and divestments, British Telecommunications PLC, WCOM, MCI Inc., MCI Communications Corp., MCIC, Company Acquisition/Merger

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Uncharacteristically, BellSouth is gushing about its future

Article Abstract:

BellSouth has been attempting to boost enthusiasm for its stock, making investors curious about why this traditionally conservative company is being so outspoken about the value of their stock. In keeping with their conservative bent, BellSouth has bucked the recent telecommunications industry trend of acquiring and/or merging with competitors, however, flouting the value of their securities has lead analysts to speculate that the company may be needing to boost the value of the stock in order to acquire a long-distance phone company.

United States, Asset sales & divestitures, COMMUNICATION, Communications, Broadcasting and Telecommunications, Securities, BellSouth Corp., BLS, Telecommunications Industry

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