Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: willcousa who wrote (6673)	5/18/2000 1:12:00 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 11568

05/18 09:49 UPDATE 1-WorldCom, Sprint confident merger will be approved (updates with companies' reaction, changes dateline pvs WASHINGTON) NEW YORK, May 18 (Reuters) - Long-distance telephone companies WorldCom Inc. and Sprint Corp. said on Thursday they remain confident their $115 billion merger will win regulatory approval despite published reports that antitrust officials believe the deal would harm consumers and should be blocked. The reports pressured shares of WorldCom and Sprint lower in early stock market trading. WorldCom slipped 1-1/8 to 40-7/8, while Sprint fell 2 to 56. Debt-market sources said WorldCom may have to delay its minimum $3.5 billion four-part bond sale following the reports. The Washington Post said Stephen Axinn, the prominent antitrust lawyer hired by the Justice Department to head the merger review, has expressed deep concerns about the deal. The Wall Street Journal quoted lawyers and industry executives as saying federal antitrust officials had recommended that the deal be blocked. The officials have "forwarded a formal recommendation to the Justice Department's antitrust chief, Joe Klein, who has not yet taken a position on the transaction," according to the report. Sources familiar with the situation told Reuters it was premature to say that a formal recommendation had been made by Justice Department staffers since the companies are still presenting their case in meetings with the government. Meetings between top company officials and Klein will be held in the next few weeks, the sources said. WorldCom <WCOM.O> and Sprint <FON.N> said they remain confident the deal will close and declined to comment on the status of discussions with U.S. and European regulators. The companies already have offered to shed Sprint's Internet backbone to ease concerns about the combined companies' dominance in that market. WorldCom has been adamant against shedding its prized UUNET Internet unit. The deal also faces intense scrutiny over the companies' long-distance market share. The deal would combine the No. 2 (WorldCom) and No. 3 (Sprint) U.S. long-distance telephone companies. The Washington Post said sources close to the companies acknowledged that WorldCom and Sprint had failed to anticipate the degree to which long-distance concerns could complicate their merger. The companies are exploring concessions to win regulatory approval, the sources said. "If you look at all the changes that have happened (in the long-distance market) -- from the regulatory arena, to the way technologies have changed and the way the competitive landscape has changed -- all that stuff when taken into account proves in our view that the merger should be approved," a WorldCom spokesman said. ((--Jessica Hall, New York newsroom 212-859-1729)) COPYRIGHT ¸ 1999 REUTERS LIMITED. ALL RIGHTS RESERVED.