New York, Feb. 6 (Bloomberg) -- Verizon Communications Inc. and SBC Communications Inc., the two largest local telephone companies, each recently considered but rejected the idea of bidding for WorldCom Inc., the New York Times reported.
Both Verizon and SBC had concerns that WorldCom's long- distance businesses would continued to face problems, the paper said, citing people close to Verizon and SBC.
Verizon and SBC may have also been put off by WorldCom's accounting practices, the paper said, citing telecommunications executives. Some investors and analysts have worried that WorldCom has been too aggressive in its accounting, particularly in reporting revenue, the paper said.
While Verizon and SBC each recently conducted its own assessment of a potential WorldCom deal, it doesn't appear that either company entered serious discussions with WorldCom, the paper said. WorldCom, the second-leading long-distance communications provider in the U.S., has seen its shares drop about 50 percent of their value since Jan. 1, closing yesterday at $6.97, down $1.16, the paper said. |
