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To: SDR-SI who wrote (2563)	6/10/1998 1:05:00 PM
From: limtex	Respond to of 11568

Steven and all - I am beginning to think that one possible response to the EU blackmail is to actually go with their threat and call the deal off. No one can work under this knid of threat it somply is not worth the stress induced damage to the health of highly creative senior management. If that is the way the EU wants it then perhaps they should be left to explain the subsequent inferiority of local services to major local companies. In the meantime WCOM could think about 1. Instituting restraining orders against any US company that sought to take advantage of a hasty EU decision that compromised its legal US plans to acquire a US company. 2. Instituting restraining orders against a number of EU telcos seeking to carry out business or make acquisitions in the US. 3. Instiutute a restraining order agianst any company that sought to acquire MCI after it had been effectively barred. 4. Institute proceedings in GATT for restraint of trade. 5. Take a number of other legal measures that would have the effect of inducing a great deal of cost and expense and time for EU companies seeking to do business in the US or possibly elsewhere say Japan. True this is not the most pleasant way to conduct business but given their record the EU surely have bigger fish to fry than to start with an entrepreneurial self made telcom company. If they wanted to start with indiustry why don't they start with Airbus Industry who without the backing of billions on EU taxpayers money wouldn't stand a commercial chance. And from Mack the Knife..." ....and the line starts on the right babe..." L

To: SDR-SI who wrote (2563)	6/10/1998 2:53:00 PM
From: dougjn	Read Replies (2) \| Respond to of 11568

Agree. (And it's nice to read a bit of sanity around here.) However irritating Van Miert & co. may be, they are a reality. Also, there are some indications that the DoJ feels similarly, and is letting the Europeans take the heat. (I doubt if in this case the ECC would have the balls to get too far out in front of the DoJ. Open critcism by the DoJ after a turn down, for example, would raise a real international ruccus for them, given how centrally American this merger is, involving U.S. tech. leadership, etc.) I imagine the deal could be done if Wcom/Mcic agreed to also divest Mcic's retail internet business. I.e., the business and perhaps also residential MCIC internet customers. The rub would come re: re-acquiring them. And indeed, restrictions against Mci later soliciting those former customers were too harsh, that would defeat the competition enhancing purpose, wouldn't it? My guess is that this is very much what the parties are currently arguing about. If such a MCI only solution is possible, and Wcom walks away from it, it will SEVERELY hurt their momentum and reputation, in my opinion. I.e., multiple deflation. That is a road they shouldn't want to go down. And I don't think they will. It's a poker game right now, being played partly in the open through the biz. press, and partly behind closed doors. Doug