MCI WorldCom, which has been rumored to be interested in acquiring wireless services companies such as SkyTel Communications (SKYT) and Nextel Communications (NXTL), has done little to settle speculation about its next takeover target. Last week, MCI WorldCom said it will double the number of shares it will issue, from 2.5 billion to five billion, so that it has the financial muscle to do a deal.
At a conference Wednesday hosted by Bank of America Securities, MCI WorldCom Vice Chairman John Sidgmore talked about wireless investments, but his elliptical comments left investors wondering if the company will make a big acquisition. Instead, Sidgmore told a standing-room only crowd at a breakout session that the company had recently bought a lot of available radio spectrum for wireless transport. Sidgmore said he would be "amazed if MCI WorldCom didn't have a lot more fixed wireless" in a few years, and that he personally thinks "paging would make an interesting add-on." He was careful to stipulate that the company wouldn't need to buy a fixed-wireless company, and hinted that technology from wireless leaders Teligent (TGNT) and WinStar (WCII) "will almost certainly be replaced."
Rumors have bounced around for weeks that the firm is trying to make an acquisition to get a foothold in the wireless arena. "We buy everybody, so people expect something now," Sidgmore told the crowd. But he failed give any hint as to whether takeover talks with Nextel, which recently ended because the company did not want to take on too much debt, have resumed or if it is interested in scooping up SkyTel. MCI WorldCom shares lost ground Thursday after rising 3.3% yesterday. SkyTel is scheduled to give a presentation at the Bank of America Securities conference this afternoon. AA
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