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

To: dougjn who wrote (2464)	5/18/1998 12:41:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 11568

WorldCom Exec Sees MCI Merger Approved By End-Summer May 18, 1998 Dow Jones Newswires BRUSSELS -- WorldCom SA (WCOM) Managing Director Christine Castelein said Monday she's confident European Union competition authorities investigating WorldCom's proposed merger with MCI Communications Corp. (MCIC) will eventually clear the deal. 'I am confident that the merger will occur, maybe at the end of the summer' Castelein said, adding that the merging companies might have to make 'concessions'. Ms Castelein made the comment after a Monday morning press conference in Brussels marking an extension in WorldCom's infrastructure and services for the Belgian small business market. When questioned on last week's hearings at the European Union Commission, she added: 'As far as I am aware, most of the complaints have been from U.S. companies - the GTEs and Sprints.' Tuesday and Wednesday last week the Commission held closed-door hearings to allow objectors to the WorldCom/MCI alliance to make their case. The $37 billion acquisition of MCI by WorldCom has attracted attention because of competition issues raised by the size of the deal and concern it may lead to a dominant position controlling the internet's infrastructure or 'backbone'. The Commission has the power to block large-scale mergers that threaten competition in E.U. markets even if, as in this case, both companies are U.S.-owned. The Commission may also insist companies offer concessions, which can include divestitures, before a proposed merger is approved. Meanwhile, WorldCom announced it will extend its voice traffic infrastructure to the whole of Belgium. WorldCom is also setting up a 'Partner Network' with Belgian information technology consultants to service the small business market. The company hopes that 'by installing our new national infrastructure, we will improve our efficiency and be able to service a much broader customer base,' Castelein said. The U.S.-based company, with 1997 annual revenue of $7.4 billion, has been operational in Belgium for one year, previously offering services in the Brussels area. Switch voice services have been made available for the rest of Belgium since 1 January 1998 through WorldCom's interconnect agreements with Belgacom, the Belgian state telecommunications company. The partnership strategy will enable 30,000 small businesses to connect to the WorldCom voice network. 'Many smaller companies felt excluded from the benefits of liberalization. But liberalization isn't only for the large corporations,' commented Renaud Montulet, Marketing Director WorldCom SA on the partnership strategy. WorldCom is establishing partnerships with resellers and consultants in the telecom equipment, networking, mobile, IT and office equipment sectors. 'Our intention is to have 30 valuable partners operational by September 1997,' said Carl Reymen, Dealer Channel Manager for WorldCom SA. The national extension of WorldCom facilities in Belgium will be operational by the end of 1998. WorldCom's customers in Belgium include Generale de Banque and CGER, and multinational accounts include Avis, the car rental company, and the European Union Commission. The company said there are no plans at present to extend services to the residential market. -By Grainne Hehir;322-285-0130;ghehir@ap.org