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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (40006)	3/12/2002 3:18:46 AM
From: Softechie	Respond to of 99280

Now can Qwest close $1.5B bonds with all SEC inquiries between Q and WCOM? The buyers will have plenty of cajones.

To: Softechie who wrote (40006)	3/12/2002 6:31:23 AM
From: LTK007	Respond to of 99280

WCOM down 6% thus far in German market.Qwest also in the news again.But Qwest is up 1% in berlin) story.news.yahoo.com WorldCom, Qwest Face SEC Inquiry Mon Mar 11,10:04 PM ET CLINTON, Miss. (Reuters) - The Securities and Exchange Commission (news - web sites) (SEC) requested accounting information from telecommunications companies WorldCom Inc. and Qwest Communications International Inc. , the companies said on Monday. The separate requests focused on different areas for each company. Denver-based Qwest said it received an informal inquiry from the SEC regarding its accounting policies, practices and procedures in 2000 and 2001. The request was the second in two months, with the prior request dealing with the purchase of assets from bankrupt telecommunications firm, Global Grossing Ltd. . The SEC requested from WorldCom, the No. 2 U.S. long-distance provider, information about its accounting procedures over goodwill, a charge taken in the third quarter of fiscal 2000 and personnel records and a loan it made to Chief Executive Bernard Ebbers, the company said. Clinton, Mississippi-based WorldCom said it is not aware of information that would cause the SEC to initiate an inquiry, and that it will respond to the SEC's request "as promptly as possible." Regarding Qwest, the SEC's letter focused on its accounting of sales of optical capacity, the telephone directory business and the sale of equipment to customers from which it bought Internet services or had contributed equity, Qwest said. Qwest said the inquiry was not an indication that regulators believe that the company broke the law. EBBERS TELLS CNBC THAT SEC QUESTIONS COMPANY LOAN WorldCom Chief Executive Bernard Ebbers told financial news channel CNBC that one aspect of the SEC request was regarding a loan the company made to him. Ebbers had to contend with margin calls as the company's share price fell. His alternative to the loans would have been to sell assets, many of which were not easily convertible to cash, Ebbers told CNBC. The company said it believes all of its policies, practices, and procedures have complied, and continue to comply, with all applicable accounting standards and laws. Also included in the request was information on the company's tracking and review of earnings estimates issued by financial analysts; information the company may have on federal or state investigations into it; disputed customer bills and commissions; and integration of WorldCom's computers with those of MCI. Ebbers said in the interview with CNBC that WorldCom placed a full text of the inquiry the SEC sent to the company on its Internet site. (http:www1.worldnet.com/global/investor_relations/) Shares in WorldCom fell 62 cents, or about 7 percent, to $8.39 in after-hours trade on Instinet after closing at $9.01 on Nasdaq. Shares in WorldCom MCI Group , WorldCom's long-distance tracking stock, fell 66 cents, or about 7.3 percent, to $8.50 on Instinet after closing at $9.16 on Nasdaq. WorldCom's 52-week high is $21.52 and its 52-week low is $5.93. WorldCom MCI Group's 52-week high is $19.33 and its 52-week low is $5.52. Qwest shares fell 25 cents to $9.46. The stock has a 52-week range of $6.54 to $41.80. Last Friday, WorldCom, whose stock price has fallen by about half in the last six weeks, said it had adopted a shareholder rights plan to prevent "undervalued or unfair takeovers." Ebbers told CNBC the plan is not meant to deter a takeover, but he does not want the company to be vulnerable to a firm taking "a run at us when our assets are undervalued." WorldCom shares have been punished by investor fears that the company's slowing revenue growth, competition with other Baby Bells, and a glut in capacity would lead it to the same fate as competing telecom companies, like Global Crossing. "I don't think we could be placed in that category," Ebbers told CNBC, when asked about the risks in the telecom business. WorldCom has $10 billion in liquidity, is free cash flow positive and has a significant customer base, Ebbers said.