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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (5170)	10/5/1999 12:01:00 PM
From: Mazman	Read Replies (1) \| Respond to of 11568

MCI WorldCom Facing Down Regulatory Hurdles After Sprint Pact The Street.com / 10-5-99 / by Michael Brick thestreet.com Regulators served notice that MCI WorldCom's (WCOM:Nasdaq) planned $115 billion acquisition of Sprint (FON:NYSE) will get their full attention. Federal Communications Commission Chairman William Kennard said at a news conference Tuesday that the proposed merger of the nation's No. 2 and No. 3 long-distance carriers would "bear a heavy burden to show how consumers would be better off," according to a spokesman. Meanwhile, analysts said Sprint's wireless operations clinched the deal, which if completed will be the largest in corporate history. The merger proposal became official early Tuesday morning after the companies' boards approved the linkup. Soon after, local phone service giant BellSouth (BLS:NYSE), which had bid $100 billion in a thwarted attempt to acquire Sprint, conceded that its discussions with the Westwood, Kan., telecom giant had concluded. Earlier, Sprint shareholder Deutsche Telekom (DT:NYSE ADR) confirmed it wouldn't counter the MCI WorldCom bid and said it would sell its 10% stake in Sprint for a $7.5 billion profit. The German phone company had been considered a possible suitor for Sprint's coveted wireless network. Shares of MCI Worldcom, which rose just under 5% Monday in anticipation of the news, were off 3 5/16, or 4.6%, at 68 5/16. Sprint shares climbed fractionally, rising 3/8 to 61 1/4, and Sprint shareholder France Telecom (FTE:NYSE ADR) added 2 1/2, or 2.9%, to 90. Deutsche Telekom was up 1/2 to 42 9/16 and BellSouth added 1/4 to 42 11/16. MCI Worldcom made it clear the wireless business was Sprint's prize jewel. "The merger with Sprint is particularly timely as wireless communications emerges as a critical component of full-service offerings," said Bernard J. Ebbers, president and chief executive of MCI WorldCom. "Increasingly, wireless will be used for Internet access and data services, two areas in which both companies excel." MCI WorldCom said it expects to save $1.9 billion in 2001 and $3 billion a year by 2004 by slashing redundant networks and taking advantage of "other operational savings." The deal now faces approval from shareholders and from an already leery Federal Communications Commission, as well as the Justice Department. MCI WorldCom and Sprint overlap one another on long distance and Internet service. The FCC said long-distance price wars, which have only gotten more heated in recent months, could slow down after the merger. And the FCC isn't the only regulatory body out there, one analyst noted. The overlaps "are pretty significant regulatory hurdles," said Gregory Miller, a telecommunications industry analyst for Jefferies. "It's not something that DOJ is going to let slide easily despite the fact that you've got other competitors coming up." MCI WorldCom badly needs Sprint's wireless assets, said Charles DiSanza, who covers WorldCom for Gerard Klauer Mattison. The firm upgraded WorldCom shares to a buy yesterday before the deal was announced. "Even if WorldCom bought Nextel (NXTL:Nasdaq), at this point, anything they do is going to be fine as long as they get in there and actually get a wireless company," he said.

To: Anthony Wong who wrote (5170)	10/5/1999 12:02:00 PM
From: silicon warrior	Read Replies (3) \| Respond to of 11568

Whatever the merits of this deal, the fact remains that we are 30% off our highs in the last 3 months and have been very substantially underperforming the Nasdaq, etc. It is a long way back to where we were. Perhaps Mr. Ebbers has lost his focus on shareholder value???

To: Anthony Wong who wrote (5170)	10/5/1999 12:55:00 PM
From: Danny	Read Replies (1) \| Respond to of 11568

<<Prudential reiterates strong buy/single best idea, target $115>> Anthony, I assume these are all recom. for WCOM?

To: Anthony Wong who wrote (5170)	10/5/1999 2:02:00 PM
From: Sean Salisbury	Read Replies (2) \| Respond to of 11568

Anthony, FYI I heard Ralph Accampora of Prudential give a sell recommendation last week on WCOM. He really is something! Of course, he and Raj were on CNBC this summer saying the Dow would hit 13,000! 3)Prudential reiterates strong buy/single best idea, target $115 I don't know where WCOM will go short term, but I am waiting for a bottom to get some calls. Sean

To: Anthony Wong who wrote (5170)	10/5/1999 2:43:00 PM
From: JDN	Read Replies (1) \| Respond to of 11568

Dear Anthony: guess the market isnt following the analysts today. haha. Incidentally, I read the very comments made by this Kennard fellow regarding the merger. Sounded really anti and really strong. Didnt sound to me as though this fellow would even consider it. The first thought that came to my mind when I read his comments was This Regulatory business seems to be getting out of hand, better make sure the Republicans capture the Presidency and Congress together next year for the sake of our economy. JDN