9/7 WorldCom to Buy CompuServe for $1.2 Bln, in Talks for AOL Unit
WorldCom to Buy CompuServe for $1.2 Bln, in Talks for AOL Unit ..excerpted..
Kansas City, Missouri, Sept. 7 (Bloomberg) -- WorldCom Inc. agreed to buy CompuServe Corp. for almost $1.2 billion in stock and is in talks to buy an America Online Inc. unit to become the biggest provider of services to link businesses over the Internet, people familiar with the transaction said.
CompuServe shareholders, including 80 percent owner H&R Block Inc., will receive about $13 in WorldCom stock for each share. WorldCom then plans to acquire AOL's business services unit in exchange for CompuServe's consumer division, $200 million and other considerations, the people said.
H&R Block will use proceeds from the sale to buy back stock and expand its profitable financial-services business, especially its sub-prime
mortgage lending division, the people said.
CompuServe's board voted to approve the transaction this morning, they said.
AOL would also get discounted networking rates from Worldcom as part of the transaction, the people said.
Officials H&R Block, CompuServe and WorldCom weren't immediately available to comment. Dulles, Virginia-based AOL declined to comment. |
