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To: Anthony Wong who wrote (5133)	10/4/1999 12:24:00 PM
From: Anthony Wong	Respond to of 11568

Banc of America's Mitchell on BellSouth, Sprint, MCI: Comment 10/4/99 10:21:00 AM Source: Bloomberg News San Francisco, Oct. 4 (Bloomberg) -- Rex Mitchell, analyst at Banc of America Securities, comments on the BellSouth Corp. bid for Sprint Corp. reported by the Wall Street Journal, as well as the possible combination of MCI WorldCom Inc. and Sprint, which are in merger talks. Mitchell rates BellSouth ''buy.'' ''If I were a gambling person, I'd put my money on WorldCom. The deal is accretive to them because they're trading at such a high multiple.'' ''For BellSouth, (a merger with Sprint would be) very dilutive. If it comes to a bidding war, the stock market will hurt both of them for making a premium bid, but it will hurt BellSouth more.'' Sprint is a better fit for BellSouth, especially with its long-distance and local assets, he said. The MCI and Sprint long- distance networks are duplicative. It would be expensive to keep both running, or a wasted asset to shut one down. On the wireless side, Sprint ''is a better fit for MCI, who is seen as desperately needing a wireless asset.'' ''MCI is highly motivated. They miss this, and they miss everything -- whereas if BellSouth misses the Sprint long- distance company, there are Qwest-U S West and IXC-Cincinnati Bell, there's other long-distance networks they could purchase.'' ''Both deals have some tough regulatory issues to get over. With MCI WorldCom-Sprint, their regulatory issue is they're putting together the No. 1 and No. 2 Internet backbone and the No. 2 and No. 3 long distance companies. BellSouth can't be affiliated with somebody that offers long distance to its customers'' until it gets regulatory approval to sell long distance itself. If BellSouth's bid is higher, ''that's only BellSouth's current bid. MCI WorldCom will probably up the ante if they feel it's slipping out of their hands.'' MCI WorldCom is likely to be ''far harsher in cutting jobs and reducing staff'' than BellSouth would be, he said. It's too early to tell how many jobs might be lost in an MCI WorldCom- Sprint merger, he said.

To: Anthony Wong who wrote (5133)	10/4/1999 12:29:00 PM
From: Anthony Wong	Respond to of 11568

10/4/99 Jefferies & Co. reiterates buy continued to mull bid for FON - reiterates accumulate 10/4/99 Legg Mason reiterates buy, bids for Sprint, target $120 Source: Bloomberg