MCI deal called antitrust test

Article Abstract:

MCI Communications Corp's agreement to buy long distance telephone service Telecom USA Inc for $1.25 billion will test the Bush Administration's policy on antitrust issues. MCI is the second-largest long distance company; Telecom is the fourth. The US government has turned a blind eye to the industry recently, and insiders doubt whether things will change now. Others believe that the administration will turn over greater regulatory responsibility to the FCC. MCI believes that competition in the industry will actually increase after the purchase because the newly enlarged company will be more competitive with AT and T. The Justice Department, under which regulation of the deal falls, has 30 days to decide whether it will question the acquisition. It currently has no comment, but must act before May 9, 1990.

Interpretation and construction, Laws, regulations and rules, Acquisitions and mergers, Antitrust law, column, Telecommunications, Legal Issues

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United Telecom to buy all of US Sprint

Article Abstract:

United Telecommunications Inc announces it will buy out GTE Corp's minority holding in US Sprint Communications Co. The two companies merged their long distance operations in 1986 to form US Sprint, each with a 50 percent stake. However, United Telecom bought 30.1 percent of GTE's stake in 1988 for $600 million, and it will buy the remaining 19.9 percent for about $500 million. As part of the purchase, United Telecom will change its name to the Sprint Corporation. Wall Street was not surprised by the news, and United Telecom's stock closed a $39.875, down 37.5 cents. US Sprint has performed well in recent years, with revenues growing from $2.67 billion in 1987 to $4.32 billion in 1989.

Long distance telephone services, Sprint Corp., Long-distance telephone service, UT, Merger, Securities Transfer

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MCI to acquire Telecom USA

Article Abstract:

MCI Communications Corp, the second-largest long-distance telephone company, agrees to buy Telecom USA Inc, the fourth-ranked company, for $1.25 billion. This is the latest and the largest in a series of acquisitions by MCI, which seeks to expand its 12 percent share of the nation's $52 billion long-distance market. Bert C. Roberts, Jr, president and COO of MCI, says a $42-a-share price is not excessive. He expects that MCI's acquisition will dilute 1991 earnings but contribute to profits after that.

Beliefs, opinions and attitudes, Market share, Roberts, Bert C., Jr.

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