Through 13. And IMO, WCOM/NXTL is *very* compelling for BBFW, especially for WCII. Like with MFS, shows Bernie WILL make dilutive acquisitions when he needs to. Looking over at NXLK and T, Bernie knows he can't dally very long. For that matter, nor can Esrey.
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MCI WorldCom/Nextel -2: No Agreements On Key Terms
From Tuesday's Wall Street Journal
By Steven Lipin, Nicole Harris and Rebecca Blumenstein
NEW YORK (Dow Jones)--MCI WorldCom Inc. is holding preliminary talks about acquiring Nextel Communications Inc., though the two phone companies have yet to reach agreements on key terms and a deal may never be reached, say people familiar with the matter.
While the two sides have hired financial advisers, some people involved put the odds of a deal at no more than 50% due to a variety of factors, price being the most significant. The companies declined to comment.
Shares of Nextel have climbed in recent weeks on rumors of a deal with MCI WorldCom or other suitors. Nextel has a current stock-market value of nearly $11 billion and long-term debt of $7.7 billion. Its major shareholders include telecom billionaire Craig McCaw, whose family made a major investment in Nextel in 1995 and who together now hold a roughly 20% fully diluted stake.
Any deal would need McCaw's blessing. McCaw is a board member and chairman of the Operations Committee of Nextel's board, which helps set business strategy. The McCaw family has invested more than $650 million in the company so far.
Nextel, based in McLean, Va., has long been at the center of takeover
speculation. The pending $56 billion pact between Airtouch Communications Inc. and Vodafone Group PLC leaves Nextel as the last remaining independent U.S. wireless company. MCI WorldCom doesn't own any wireless operations.
MCI WorldCom's lack of presence in the wireless industry has become
glaring in recent months. Consumers are using wireless phones in record numbers. And MCI WorldCom rivals such as AT&T Corp. are signing up hundreds of thousands of subscribers every quarter, spurred by nation-wide calling plans, such as AT&T's Digital One Rate, that eliminate roaming or long-distance charges.
In January, MCI WorldCom, Jackson, Miss., briefly mulled entering the
battle over Airtouch. But MCI WorldCom's stock fell as word of its interest spread, and the company issued a release saying it would not place a bid.
MCI WorldCom is loath to do a big transaction that would dilute its
earnings, and its rocketing stock price suggests it doesn't now need a
wireless play to please investors. Moreover, MCI WorldCom may want to do a transaction only if it could obtain favorable accounting treatment. The Securities and Exchange Commission has been making it increasingly difficult to use 'pooling-of-interests' accounting, which allows companies to avoid hefty charges to reported earnings for writing down goodwill.
(MORE) DOW JONES NEWS 04-06-99
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