My viewpoint is that the merger with MFS might make Worldcom an even more attractive takeover target. One of the biggest problems that the RBOCs are having competing with ATT and MCI is in internet access. From what I have heard, the RBOCs are behind the field in terms of technical expertise, equipment (servers and switches), and connectivity. Acquiring Worldcom (which now is one of the few (only?) companies able to offer local, long distance, and internet access) would let the bidder buy the personnel, equipment, and connectivity needed to offer internet access, as well as increasing substantially that RBOC's long distance ability and market share. Because Worldcom is weakest in the local markets, a business combination with an RBOC may make some sense.
Whether an RBOC could put together a deal before the January option expiration date is another matter. It would be awfully ambitious. Maybe the March time frame offers better timing to put a deal together--but this is just idle speculation.
I'm in Worldcom because its an excellent company, and its management has shown a consistent record of maximizing returns to the shareholders. So, at its current price, its still a decent long term value in my book, and the chance of a takeover bid is just icing on the cake. |
