WorldCom Exec Sees MCI Merger Approved By End-Summer
May 18, 1998
Dow Jones Newswires
BRUSSELS -- WorldCom SA (WCOM) Managing Director
Christine Castelein said Monday she's confident European
Union competition authorities investigating WorldCom's
proposed merger with MCI Communications Corp. (MCIC)
will eventually clear the deal.
'I am confident that the merger will occur, maybe at the end of
the summer' Castelein said, adding that the merging companies
might have to make 'concessions'.
Ms Castelein made the comment after a Monday morning
press conference in Brussels marking an extension in
WorldCom's infrastructure and services for the Belgian small
business market.
When questioned on last week's hearings at the European
Union Commission, she added: 'As far as I am aware, most of
the complaints have been from U.S. companies - the GTEs
and Sprints.' Tuesday and Wednesday last week the
Commission held closed-door hearings to allow objectors to
the WorldCom/MCI alliance to make their case.
The $37 billion acquisition of MCI by WorldCom has
attracted attention because of competition issues raised by the
size of the deal and concern it may lead to a dominant position
controlling the internet's infrastructure or 'backbone'. The
Commission has the power to block large-scale mergers that
threaten competition in E.U. markets even if, as in this case,
both companies are U.S.-owned.
The Commission may also insist companies offer concessions,
which can include divestitures, before a proposed merger is
approved.
Meanwhile, WorldCom announced it will extend its voice
traffic infrastructure to the whole of Belgium. WorldCom is
also setting up a 'Partner Network' with Belgian information
technology consultants to service the small business market.
The company hopes that 'by installing our new national
infrastructure, we will improve our efficiency and be able to
service a much broader customer base,' Castelein said.
The U.S.-based company, with 1997 annual revenue of $7.4
billion, has been operational in Belgium for one year,
previously offering services in the Brussels area. Switch voice
services have been made available for the rest of Belgium since
1 January 1998 through WorldCom's interconnect agreements
with Belgacom, the Belgian state telecommunications
company.
The partnership strategy will enable 30,000 small businesses to
connect to the WorldCom voice network. 'Many smaller
companies felt excluded from the benefits of liberalization. But
liberalization isn't only for the large corporations,' commented
Renaud Montulet, Marketing Director WorldCom SA on the
partnership strategy. WorldCom is establishing partnerships
with resellers and consultants in the telecom equipment,
networking, mobile, IT and office equipment sectors.
'Our intention is to have 30 valuable partners operational by
September 1997,' said Carl Reymen, Dealer Channel
Manager for WorldCom SA.
The national extension of WorldCom facilities in Belgium will
be operational by the end of 1998.
WorldCom's customers in Belgium include Generale de
Banque and CGER, and multinational accounts include Avis,
the car rental company, and the European Union Commission.
The company said there are no plans at present to extend
services to the residential market.
-By Grainne Hehir;322-285-0130;ghehir@ap.org |
