Report: SEC probes MCI WorldCom on SkyTel buy
By Bloomberg News
Special to CNET NEWS.COM
June 4, 1999, 8:25 a.m. ET
MCI WorldCom's proposed acquisition of SkyTel Communications
is being investigated by the Securities and Exchange Commission,
according to reports.
The Wall Street Journal reported the news, citing an unnamed "person familiar with
the situation." The commission is investigating whether the company misled investors
when it appeared to deny that it planned to buy SkyTel just three days before
announcing the transaction.
Some investors and analysts were upset at MCI
WorldCom's apparent denial, especially after the
company stood by a similar statement in January denying
it would purchase Air Touch Communications, and MCI
WorldCom executives declined comment, the Journal
said.
MCI WorldCom, the No. 2 U.S. long distance
company, faces a class-action lawsuit alleging that some
SkyTel shareholders lost money when MCI WorldCom
last week appeared to deny plans to buy the No. 2 U.S.
paging company.
Copyright 1999, Bloomberg L.P. All Rights Reserved. |
