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To: ANANT who wrote (2643)	6/17/1998 11:51:00 PM
From: Anthony Wong	Respond to of 11568

C&W $625 Mln MCI Internet Acquisition 'in Jeopardy', Paper Says Bloomberg News June 17, 1998, 8:13 p.m. ET C&W $625 Mln MCI Internet Acquisition 'in Jeopardy', Paper Says London, June 18 (Bloomberg) -- Cable & Wireless Plc's proposed $625 million acquisition of MCI Communications Corp.'s wholesale Internet business is ''potentially in jeopardy,'' The Daily Telegraph reported, citing industry sources. C&W has first option on the business, though an auction between companies such as British Telecommunications Plc, Qwest Communications International Inc. and IXC Communications Inc. may push up the price. C&W, the U.K.'s second-largest telephone company, will receive $25 million if MCI decides against the sale; C&W said it is talking to MCI about other parts of its business, the paper said. On June 15said an EU official close to the negotiations said MCI offered to sell all its Internet assets to win European Union regulatory approval for WorldCom Inc.'s $40.2 billion acquisition of MCI. (Daily Telegraph 6/18 37 www.telegraph.co.uk) --Abid Ali in the London newsroom (44) 171 330 7381/mpk

To: ANANT who wrote (2643)	6/17/1998 11:59:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 11568

C&W $625m Internet buy 'in jeopardy'- The London Telegraph June 18, 1998 By Andrew Cave in New York CABLE & Wireless's proposed $625m (œ375m) acquisition of the wholesale Internet business of US telecoms group MCI Communications was said to be "potentially in jeopardy" yesterday. The comments by industry sources came as MCI continued talks with the European Commission over obtaining regulatory clearance for its $37 billion merger with rival US telecoms group Worldcom. The regulators say that the disposal of the wholesale operation, which sells bulk Internet capacity to service providers, is insufficient to address competition concerns. The Worldcom merger would give MCI 45pc-65pc of total Internet traffic and EC regulators reportedly want MCI to also sell its retail Internet operations. Some sources said an announcement is expected in Brussels tomorrow. MCI can talk to other potential purchasers of either operations following an unsuccessful attempt by Cable & Wireless to block such a move in the American courts. An MCI spokesman said yesterday: "We are free to do it. We have not said what we will do but we do have that flexibility." Cable & Wireless has first option on the retail Internet business but a full auction between companies such as BT, Qwest Communications, IXC Communications and PSINet is likely to drive up the price. Under the terms of its deal with MCI, Cable & Wireless would receive $25m if MCI pulls out of the wholesale Internet business sale. Cable & Wireless said it is talking to MCI about "other parts of its business". Cable & Wireless chief executive Dick Brown said: "We knew it was going to be a moving target. We will see how it works out. We know it may change. If it does, we will assess what it is and what it might cost but at the moment we are in a good position and our people talk every day."