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To: Mazman who wrote (5175)	10/5/1999 12:40:00 PM
From: Anthony Wong	Respond to of 11568

MCI WorldCom-Sprint Expects 20% Annual Revenue Growth (Update1) 10/5/99 12:02:00 PM ET Source: Bloomberg News (Adds details in 3rd paragraph Global One joint venture.) New York, Oct. 5 (Bloomberg) -- MCI WorldCom Inc. and Sprint Corp. said their combined company will grow revenue by 20 percent a year. At a press conference in New York, the companies said their agreement to combine has a $2.5 billion breakup fee. MCI WorldCom Chief Executive Bernard Ebbers also said he doesn't anticipate divesting any of the European investments by the companies. Sprint Chief Executive William Esrey said the company's Global One joint venture with France Telecom and Deutsche Telekom will soon change ownership with one of the three partners buying it. Esrey said talks will begin ''almost immediately' and he expects a resolution in a couple of months. He wasn't more specific. Earlier, MCI WorldCom agreed to buy its long-distance telephone rival Sprint for $129 billion in stock and assumed debt in the world's biggest corporate takeover. Sprint holders will receive $76 a share in stock of MCI WorldCom, the second-biggest U.S. long-distance phone company. That's 25 percent above yesterday's closing price. Each share of Sprint PCS, the company's wireless unit, will be exchanged for one share of a new WorldCom PCS tracking stock and 0.1547 shares of MCI WorldCom common stock. Sprint fell 3/4 to 60 1/8 in midday trading, and Sprint PCS fell 5 11/16 to 73. MCI WorldCom fell 3 5/16 to 68 5/16 and BellSouth rose 1/2 to 42 3/16.