WorldCom Completes Merger With MCI
PR Newswire - September 14, 1998 17:18
MCI WorldCom Raises the Bar with 'Local-to-Global-to-Local' Network Platform
JACKSON, Miss., Sept. 14 /PRNewswire/ -- WorldCom (Nasdaq: WCOM) today completed its merger with MCI, officially
forming MCI WorldCom. As part of the merger agreement, MCI stockholders receive 1.2439 MCI WorldCom shares for each
MCI share held. BT receives $51 per share in cash for each of the Class A shares it owns.
The merger creates a new era communications company providing customers around the world with a full set of data, Internet,
local and international communications services over its own seamless "local-to-global-to-local" network.
"MCI WorldCom is uniquely qualified to lead the industry in growth and to build on the tremendous value we have created for our
shareholders," said Bernard J. Ebbers, president and chief executive officer of MCI WorldCom. "We have the right network --
built for the explosive demand for high-speed data and Internet services -- the right talent, and the right strategy at the right time.
Simply put, MCI WorldCom is out in front and sets the standard by which all other communications companies will be measured."
"MCI WorldCom is open for business," said Bert C. Roberts Jr., chairman of MCI WorldCom. "We have created a new kind of
communications company with a unique set of assets, a top-flight group of employees, and a heritage for delivering the benefits of
competition to our customers."
MCI WorldCom will issue approximately 760 million shares in the aggregate to complete the transaction. The transaction is
accounted for as a purchase and is tax-free to MCI stockholders. The new 18-member Board of Directors of MCI WorldCom is
composed of 12 outside members and six officers of the company.
MCI WorldCom is a global telecommunications company with revenue of more than $30 billion and established operations in over
65 countries encompassing the Americas, Europe and the Asia-Pacific regions. MCI WorldCom is a premier provider of
facilities-based and fully integrated local, long distance, international and Internet services. MCI WorldCom's global networks,
including its state-of-the-art pan-European network and transoceanic cable systems, provide end-to-end high-capacity connectivity
to more than 35,000 buildings worldwide. For more information on MCI WorldCom, visit the World Wide Web at
mciworldcom.com or wcom.com.
MCI WORLDCOM Corporate Overview
MCI WorldCom (Nasdaq: WCOM) is a new kind of communications company. With revenue of more than $30 billion, MCI
WorldCom combines financial strength and a depth of resources to pursue the industry's best growth opportunities with an
advanced global network built for the data-intensive era of communications.
A UNIQUE SET OF ASSETS
MCI WorldCom's strategy is capitalizing on the industry's fastest growing segments: data/Internet, international and U.S. local
phone services. It has assembled a unique set of assets to pursue this strategy, including:
-- more than 75,000 employees based in more than 65 countries who have
successfully competed against incumbent carriers for every one of the
company's 22 million customers.
-- a "local-to-global-to-local" network with owned network facilities
throughout North America, Latin America, Europe and the Asia-Pacific
region, reducing its reliance on incumbent phone monopolies in the U.S.
and around the world and enabling it to deliver greater value and
better quality of service control to its customers.
-- a long association with the Internet that has enabled UUNET WorldCom to
develop an Internet business with over $2 billion in annualized
revenue, growing at approximately 70 percent annually through the
industry's highest capacity backbone and most extensive portfolio of
Internet services.
-- MCI Systemhouse, a world-class systems integration and outsourcing
business with expertise in providing integrated network enterprise
solutions and network management services.
-- An entrepreneurial management team with a consistent track record for
creating industry-leading shareholder value over the past 10 years.
-- a commitment to creating innovative services and value for its
customers through some of the industry's most recognized brands,
including UUNET, Intelenet, networkMCI One, MCI Systemhouse, Classic,
Transcend, MCI One, 1-800-COLLECT, 5 Cent Sundays, 10-10-321 and
others.
MCI WORLDCOM STRUCTURE
This unique set of assets is deployed across three divisions. These divisions include MCI WorldCom, the U.S. communications
operations; UUNET WorldCom, providing Internet and technology services; and WorldCom International.
U.S. Operations -- MCI WorldCom serves millions of U.S. business and consumer customers with a fully integrated package of
long distance, local -- available from more than 100 markets nationwide -- data, Internet and other communications services.
Internet Operations -- UUNET WorldCom has developed the most reliable, widely deployed Internet network and portfolio of
Internet and information technology services in the world. The powerful UUNET WorldCom backbone supports speeds ranging
from 28.8 Kbps to OC-12 and provides local access from more than 1,000 locations worldwide. WorldCom Advanced Networks
offers virtual private network (VPN), security, customer care, web hosting and e- commerce services.
WorldCom International -- WorldCom International has established itself as a local, facilities-based competitor in 15 countries
outside the U.S. with high capacity connectivity to more than 5,000 buildings linked to the rest of the company's network via
transcontinental and transoceanic cables.
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