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: Oeconomicus who wrote (11465)	11/14/2002 11:01:34 PM
From: FNS	Read Replies (2) \| Respond to of 11568

Hi Buschman, the stock (?) was up .04 today but after reading the article below, I'm confused! Namely, about what CFO Dubel said; i.e., " ...no value in common stock or preferred".... yet the stock is still trading!!! Is he saying that upon emerging from BK, the stock (WCOEQ) will be worth $0.00??? and existing shareholders will get no piece of the new company??? But since the stock is trading, there seems to be some die-hards out there speculating that former shareholders could end up with some piece of the new entity!!! Your thoughts. thx, fns << UPDATE 2-WorldCom to name CEO this week-sources (Adds details, byline) By Ilaina Jonas NEW YORK, Nov 14 (Reuters) - WorldCom Inc. (WCOEQ) (MCWEQ), the bankrupt telephone company, was expected to name a new chief executive officer by Friday, and former Hewlett-Packard President Michael Capellas is the front-runner, sources familiar with the situation said on Thursday. Capellas resigned as president of computer company Hewlett-Packard Co. (HPQ) on Monday. Details of his compensation and contract were being hammered out this week and Capellas may assume both the CEO and chairmanship positions, sources said. It was unclear what roles, if any, WorldCom's current chairman and CEO, Bert Roberts and John Sidgmore, respectively, would assume. Sidgmore previously had been vice chairman of the company before being named CEO in April when then-CEO Bernie Ebbers resigned. The committee representing creditors holding WorldCom's $35 billion to $40 billion in debt met Wednesday evening to weigh Capellas' appointment, the sources said, but a decision has not been announced. "Capellas is just what WorldCom needs in this area. He's got the character and integrity and reputation to help WorldCom not only emerge from bankruptcy, but also to win that second chance among many customers and investors," said independent telecommunications analyst Jeffrey Kagan. WorldCom filed the largest bankruptcy proceeding in history on July 21. Its creditors will become the company's owners when it emerges from Chapter 11 bankruptcy. That is not expected before mid- or late-2003. Meanwhile, the company's chief financial officer told a group of creditors that the appointment would be announced within a week. The company previously said it aimed to name a new CEO later this year. 'WITHIN NEXT WEEK' "We hope to have an announcement within the next week," WorldCom's Chief Financial Officer John Dubel told an audience of about 80 creditors, analysts and stockholders during a meeting in New York on Thursday. Dubel also reiterated that the company does not intend to sell any of its core long-distance telephone, data and Internet assets, but is looking to sell some of its other holdings. "We intend to keep as a whole, our worldwide network," Dubel said. The new chief executive would assume leadership of the embattled company as it struggles to hold on to customers and its former executives face indictments of criminal fraud. WorldCom, the No. 2 U.S. long-distance service to consumers and one of the largest providers of voice and data services to corporations, plans to put its paging unit, Skytel, and MMDS wireless spectrum on the market shortly through its financial advisor Lazard Freres. MMDS, or multichannel multipoint distribution service, is a type of wireless spectrum that can transmit wireless and data services. WorldCom also reiterated it is eyeing investments in Latin America for possible sale. WorldCom also soon will name a permanent corporate controller who would be responsible for overseeing and developing accounting and control policies, Dubel said. In September, the company's former controller, David Myers, pleaded guilty to charges of filing false documents with securities regulators and to fraud. The new controller will report directly to the audit committee of WorldCom's board of directors. In the past, Myers reported to the company's former CFO Scott Sullivan, who has been indicted on seven counts of fraud. When it does emerge in whatever form from bankruptcy protection, the former stockholders will be left with nothing. "We don't see any value in any common stock, or preferred stock," Dubel said. ? Reuters 2002. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.