Antitrust review may scuttle MCI deal

Article Abstract:

WorldCom's bid to acquire MCI for $37 billion could unravel if European Union antitrust regulators force WorldCom to divest its Internet business, UUNet Technologies, according to executive insiders. A European Union advisory panel will meet on Jun 19, 1998, to consider the WorldCom-MCI merger. Both companies are under pressure to make additional concessions before the committee's meeting, which marks an important step in the EU regulatory process that is due by mid-Jul 1998. MCI already has planned to sell its wholesale Internet business to Cable & Wireless, which the companies said would shed all of MCI's Internet business. Karel Van Miert, competition commissioner of the EU, said the deal between MCI and C&W did not fully resolve the commission's main concerns that WorldCom-MCI would hold a strong position in operating the Internet backbone. MCI could settle the matter by selling UUNet, according to another EU Commission member, but WorldCom CEO Bernard J. Ebbers has ruled out such a scenario.

Telecommunications, Telephone Communication, Cases, Company acquisition/merger, Antitrust law, WCOM, MCI Inc., MCI Communications Corp., MCIC, Antitrust Issue

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GTE discloses 3 big deals in growth bid; BBN to be acquired for $616 milion cash

Article Abstract:

GTE has announced its decision to acquire BBN, one of the country's largest ISPs, for $616 million in cash. The acquisition is an attempt by GTE to position itself as a major operator of corporate data networks. The acquisition is one of three deals that the company is involved in as it moves to reposition itself. GTE will also be spending $485 to purchase 25% of a new fiber optic network that Quest Communications is building. Cisco Systems and GTE have formed an alliance to develope new products and services. GTE is also committed to buying up to $1 billion worth of products from Cisco by 2002. AT&T is currently the leader in providing corporate networks, with about 60% of the $12 billion market, followed by MCI then Sprint and Worldcom.

COMMUNICATION, Communications, Broadcasting and Telecommunications, GTE Corp., GTE, BBN, Company Acquisition/Merger, BBN Corp.

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