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To: jeff wheatley who wrote (29154)	1/1/1998 10:59:00 PM
From: Glenn D. Rudolph	Respond to of 61433

WorldCom Expects Big Savings From Complex On-Line Deal By SHAWN YOUNG Dow Jones Newswires WorldCom Inc. expects savings of $75 million in 1998 and $148 million in 1999 from its pending deal to buy on-line networks from CompuServe Corp. and America Online Inc., according to a document WorldCom filed with the Securities and Exchange Commission. In a proxy filing and prospectus related to the transaction, which is expected to close at the end of January, Goldman Sachs & Co. said Wednesday the company provided the firm with those estimates in order for it to perform a financial analysis. WorldCom estimated synergies in 2000 at $261 million, the document said. The company didn't give a detailed basis for the estimates, the filing said. WorldCom, the upstart Jackson, Miss., telecommunications company which is paying about $37 billion to acquire MCI Communications Corp., agreed in September to anchor a complex three-way deal in which it will pay $1.2 billion for CompuServe's 1,200 corporate customers and network assets, and sell CompuServe's consumer business of 2.6 million customers to AOL. WorldCom also will pay AOL, based in Dulles, Va., $175 million for its high-speed Internet division, ANS Communications Inc. Tax-preparation services provider H&R Block, which owns about 80% of Columbus, Ohio-based CompuServe, said a proxy statement is being mailed to CompuServe stockholders this week and anticipates the transaction will be completed on Jan. 30. When the deal was announced WorldCom said it expected it to add to earnings.