Effective as of the close of regular trading on July 12, 2002, WorldCom will eliminate its tracking stock structure and have one class of common stock.
So what will the ticker be? hmmmmmmmmmmm.
Common Stock
On August 14, 1989 WorldCom, Inc. (formerly LDDS Communications, Inc.) went public through a merger with Advantage Companies.
On June 7, 2001 WorldCom, Inc. announced that its proposal to create two tracking stocks has been approved by shareholders. WorldCom group stock (Nasdaq: WCOM) will reflect the performance of the Company's high-growth data, Internet and international operations, as well as commercial voice services, and MCI group stock (Nasdaq: MCIT) will reflect the performance of its high-cash flow consumer, small business, wholesale long distance, wireless messaging and dial-up Internet access operations.
Allocation of Cost for Tracking Stocks
Your basis in the existing common stock held immediately before the implementation of the tracking stock proposal will be allocated between the WorldCom group stock and MCI group stock received, including any fractional shares deemed received, in proportion to the fair market value of the WorldCom group stock and MCI group stock on the date the tracking stock proposal is implemented.
Example:
June 8, 2001 Stock Price: WorldCom group $17.85
June 8, 2001 Stock Price: MCI group $18.06
The allocation of cost basis for WorldCom, Inc. stock to WorldCom group stock and MCI group stock is computed as indicated below:
Allocation
Percentage
WorldCom group: 1 Share $17.85 96.11%
MCI group: .04 shares $ 0.72 3.89%
Market value $18.57 100.00%
Allocation of Cost would be 3.89% for MCI group and the remainder to WorldCom group.
For additional information on allocation of cost & stock tax implications, please refer to the 2000 Annual Report / 2001 Proxy Statement.
Dividends
WorldCom, Inc. has declared the following dividend schedule for the MCI group:
October 15, 2001
$0.60 per share for shareholders of record as of September 28, 2001.
View Press Release
January 15, 2002
$0.60 per share for shareholders of record as of December 31, 2001.
View Press Release
April 15, 2002
$0.60 per share for shareholders of record as of March 31, 2002.
View Press Release
July 15, 2002
$0.60 per share for shareholders of record as of June 30, 2002.
View Press Release
The WorldCom group does not intend to pay a dividend. The MCI group intends to pay a dividend of $0.60 per quarter.
Series B Preferred
WorldCom Announces Redemption of Series B Convertible Preferred Stock more. |
