MCI , WorldCom expect regulatory okays soon
Wednesday June 24, 10:13 am Eastern Time
WASHINGTON, June 24 (Reuters) - MCI Communications Corp. and WorldCom Inc (WCOM - news) continue negotiating with U.S. and European regulators over their $37 billion merger, but expect a favorable outcome soon, MCI general counsel Michael Salsbury said on Wednesday.
''At this time, discussions with regulators about the precise contours of what MCI will divest, and to whom it will be divested, continue,'' Salsbury said in prepared testimony for a House Judiciary Committee hearing. ''The discussions have been productive and we expect an expeditious and favorable conclusion to our merger review.''
Salsbury said it would be ''inappropriate'' to discuss details of the negotiations.
But sources familiar with the talks have said MCI plans to sell off its entire Internet business to address concerns from the European Union that the proposed merger would harm competition for wholesale Internet services. The divestiture is expected to raise more than $1 billion.
The European Commission is expected to approve the merger shortly and the divestiture plan is expected also to satisfy the concerns of the U.S. Justice Department.
The merger must also be approved by the Federal Communications Commission and several states.
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