Wednesday December 1 2:40 PM ET
MCI WorldCom Stock Off on Rumors of Slow Growth
NEW YORK (Reuters) - Shares of long-distance telephone company MCI WorldCom Inc. (NasdaqNM:WCOM - news) fell more than 4 percent on Wednesday amid market rumors that its revenue growth may be slower than expected, analysts said.
MCI WorldCom, which is set to acquire smaller rival Sprint Corp. (NYSE:FON - news) for $115 billion, lost 3-13/16 to 78-7/8 in heavy trading on Nasdaq, adding to loses seen on Tuesday. The stock was well below its 52-week high, set in June, of 96-3/4.
Shares of Sprint fell 2-1/16 to 67-5/16 on the New York Stock Exchange.
``There's a rumor out there that WorldCom is going to lower its top line growth numbers to about 14 percent from 16 percent,' said one analyst who declined to be named.
A spokesman for MCI WorldCom, which has been one of the darlings of Wall Street's bull market, declined to comment.
Another analyst said the rumor stemmed from a report by cable television network CNBC, which said brokerage firm Lehman Brothers lowered its revenue growth forecast for the Clinton, Miss.-based company.
Lehman representatives did not immediately return calls seeking comment.
There was also a block of nearly 1.2 million shares of MCI WorldCom's stock crossed by ITG. Additional details on the block trade were not immediately available.
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