Cable and Wireless seeking lines in U.S., executives say

Article Abstract:

Cable and Wireless is attempting to purchase fiber optic communications lines valued at more than $300 million from Qwest Communications International in hopes of strengthening its US operations, executive insiders said. Both companies are in serious negotiations but some unsettled details will prevent completion of any potential blockbuster deal until late Dec 1998 or mid-Jan 1999, the insiders added. Britain-based Cable and Wireless would benefit by operating its own network as opposed to its present strategy of leasing communications lines from other companies. Not only can these carriers lower operating costs, they also bolster their chances of landing accounts from large corporations such as Fortune 100 companies. Cable and Wireless, a leading long-distance voice traffic carrier in the US, positioned itself with the $1.75 billion acquisition of MCI's Internet business in Jul 1998. Qwest would strengthen its position as a significant global telecommunications force.

United Kingdom, United States, Telecommunications, New orders received, Telephone Communication, Other Communications Equipment Manufacturing, Fiber Optics Systems & Equip, Use of materials & supplies, Communications equipment, not elsewhere classified, Equipment and supplies, Telephone company, Telephone companies, Telecommunications equipment industry, Fiber optic networks, Contracts, Contract agreement, Fiber transmission equipment, Qwest Communications International Inc., QWST

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MCI reported to be near full Internet sale

Article Abstract:

MCI is poised to sell its entire Internet business to Cable and Wireless as part of a plan to receive regulatory approval for its acquisition by Worldcom, according to executive insiders. Financial terms of the new deal, which could be announced in mid-Jul 1998, would call for Cable and Wireless to pay $1.5 billion and $2 billion in cash. This amount would include the $625 million that Cable and Wireless paid to acquire MCI's wholesale Internet business in May 1998, the executives said. The arrangement would set the stage for the Justice Department to support Worldcom's proposed $37 billion acquisition of MCI. It also represents the latest MCI attempt to soothe Justice Department concerns that a combined MCI-Worldcom could control the Internet business.

Telegraph & other communications, Specialized Telecom Services, Wired Telecommunications Carriers, Company acquisition/merger, Internet services, MCI Communications Corp., MCIC

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