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

To: dougjn who wrote (2580)	6/11/1998 6:53:00 PM
From: JM	Respond to of 11568

When it rains... it pours. MCI accidentally cuts cable: biz.yahoo.com Stock really got bashed today (along with most of the rest of the market). MY GUESS is that there will be some good buying opportunities until this mess is settled. MCI is indeed a big fish to swallow.

To: dougjn who wrote (2580)	6/11/1998 7:42:00 PM
From: ANANT	Respond to of 11568

doughin and all: Break uu fee to C&W If MCI has to sell off some more internet assets in addition to the backbone internet ( now under contract with C&W) to satisfy the regulators, MCI may have to review the existing contract with C&W and enter into new negotiations with C&W for the whole internet package. If it does not work, MCI should pay off the break up fee, get out of the contract with C&W and shop around to sell the whole package to some other co. The portion of internet proposed to be sold should be made marginal just enough to satisfy the regulators. so that value of MCI/WCOM merger is not compromised. This is my 2-cents worth. What do I know. kind rgds ANANT

To: dougjn who wrote (2580)	6/11/1998 10:34:00 PM
From: MGV	Respond to of 11568

Doug, The alleged statement of a C&W rep. regarding prospective UUNet terms HAD to be taken out of context. In any other vein, you are right: it is laughable. Admittedly, not having read the sale agreement between MCI & C&W, I think the $25M break up clause is a straight-forward contractual deal-breaker. Certainly, MCI would not have included the clause without contemplating the potential for regulatory constraints impeding them from following through. This is exactly the circumstance that they would have contemplated. Hence the clause. Therefore, my guess is the break up fee is a clear and legal exit for MCI here. As an aside, I don't mind C&W kicking and screaming right now in these final days of regulatory jockeying. ; ) It strengthens the argument on behalf of MCI/WCOM that the C&W sale removes valuable strategic assets from WCOM. In other words, if this deal was as competitively insignificant as the two scions of objectivity - GTE and Sprint - claim it is, then why is C&W fighting so hard to have it enforced? In the end: the deal goes through. It goes through because US regulators are calling the shots here (despite Van Miert's quite vocal 15 minutes of spotlight) and the deal is pro-competitive in local markets. When it comes down to it, the internet concessions WCOM makes will be accepted. The negotiations will be hard on both sides. Nevertheless, neither the EEC nor Bill Barr's access to ears in the DOJ will stop it. - Mark