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To: ANANT who wrote (2659)	6/18/1998 2:39:00 PM
From: Anthony Wong	Respond to of 11568

WorldCom, MCI Reach Agreement With EU on Purchase, CNBC Says Bloomberg News June 18, 1998, 1:46 p.m. ET Jackson, Missouri, June 18 (Bloomberg) -- WorldCom Inc. and MCI Communications Corp. reached an agreement with the European Union on the terms necessary for the EU to support WorldCom's proposed purchase of the No. 2 U.S. long-distance company, CNBC reported. MCI will sell its entire Internet business, which generates annual revenue of about $320 million and could fetch as much as $1 billion, CNBC said, citing unidentified people close to the agreement. The EU's concerns appear likely to be resolved tomorrow, with member states expected to approve the transaction when they meet on July 8, CNBC said. The U.S. Justice Department is still reviewing whether WorldCom's proposed $42 billion acquisition might reduce competition in the wholesale long-distance business. (CNBC 6/18 www.cnbc.com) --Ruth Drennan in the Princeton newsroom (609) 279-4020/gam

To: ANANT who wrote (2659)	6/18/1998 2:40:00 PM
From: Anthony Wong	Respond to of 11568

WorldCom Close to First EU Approval of MCI Purchase (Update1) Bloomberg News June 18, 1998, 1:56 p.m. ET WorldCom Close to First EU Approval of MCI Purchase (Update1) (Updates with regulators near approval in 1st paragraph; adds France Telecom comment in 4th, 7th and 8th paragraphs.) Brussels, June 18 (Bloomberg) -- European Union regulators are close to approving WorldCom Inc.'s proposed $40.2 billion purchase of MCI Communications Corp. after the companies this week offered further concessions to ensure they won't dominate the fast-growing Internet market, EU and company officials said. Preliminary approval could come by tomorrow, when EU merger experts are expected to recommend clearing the acquisition to a competition committee, which is expected to vote in favor of that recommendation. CNBC reported, citing unidentified sources, that the companies reached an agreement with the EU on terms that would satisfy regulators' concerns. A committee member, who asked not to be identified, said EU regulators are likely to change their recommendation to block the acquisition, made last week before MCI agreed to sell more of its Internet assets. Aides to Competition Commissioner Karel Van Miert told the committee this week that talks with the companies are progressing, the committee member said. Commission officials yesterday asked competitors of WorldCom and MCI to comment on additional concessions it's negotiating with the companies, according to France Telecom SA, Europe's second-biggest telecommunications provider behind Germany's Deutsche Telekom AG. EU regulators wouldn't, as a rule, ask competitors for their opinion on concessions unless WorldCom and MCI had already agreed to them, said an EU spokesman who asked not to be named. Under EU rules, the commission must give interested third parties a chance to comment on antitrust concessions companies are offering, though their comments aren't binding. The 20-member European Commission, the EU's executive agency, is expected to make its final ruling on July 8. Comments From Competitors MCI agreed in principle to sell all its Internet assets after its proposed sale of its wholesale Internet business to Cable & Wireless Plc failed to satisfy EU concerns, an EU official close to the negotiations said Monday. The conditions outlined by the commission yesterday in its survey of telecommunications competitors included a transfer of MCI's Internet-customer accounts to the company that buys the assets and a guarantee from MCI that it won't try to reacquire its old customers following the sale, said Estelle Rozine, spokeswoman for France Telecom. ''We totally agree with the concessions that MCI and WorldCom are presenting via the European Commission,'' Rozine said. ''It's acceptable if MCI-WorldCom sells its Internet networks and also their listings of customers.'' Mark Weeks, a spokesman for WorldCom in London, said the companies and EU regulators made progress this week toward an agreement that would satisfy both sides. ''We're having ongoing and fruitful discussions with the European Commission, and we look forward to and are confident of a resolution,'' Weeks said. Though Weeks wouldn't comment on whether the companies expect preliminary approval tomorrow, he said comments by WorldCom Chief Executive Bernard Ebbers and MCI Chairman Bert Roberts earlier this week that they expect approval as early as tomorrow ''speak for themselves.'' The commission is investigating the acquisition in tandem with the U.S. Department of Justice and the Federal Communications Commission. The Justice Department isn't expected to make a decision until after reviewing terms of a specific agreement by MCI to sell its Internet assets, analysts said. --Alison Jahncke in the Brussels bureau (32 2) 285 4300 and James

To: ANANT who wrote (2659)	6/18/1998 2:42:00 PM
From: Anthony Wong	Respond to of 11568

Cable & Wireless Drops Suit Against MCI Over Internet Buy Bloomberg News June 18, 1998, 2:09 p.m. ET Cable & Wireless Drops Suit Against MCI Over Internet Buy Washington, June 18 (Bloomberg) -- Cable & Wireless Plc dropped the breach-of-contract lawsuit it had filed against MCI Communications Corp. to secure its bid to buy all of the long- distance company's Internet business. The British telecommunications company's Washington lawyer, George Cary, notified a federal court here that Cable & Wireless no longer is pursuing the case. The company is holding discussions with MCI over the sale of Internet services. MCI spokesman Frank Walter declined to comment. After initially agreeing to sell Cable & Wireless its wholesale Internet business for $625 million, MCI now is seeking to sell the rest of its Internet services to win approval by regulators of its $2 billion takeover by WorldCom Inc. The lawsuit accused MCI of breaching its sale contract by soliciting offers for the balance of its Internet business without giving Cable & Wireless the opportunity to first bid on the properties. U.S. District Judge Thomas Penfield Jackson last Friday refused to grant Cable & Wireless' request to enjoin MCI from discussing the Internet sales with other prospective buyers. Since then, Cable & Wireless has said it is having discussions with MCI but refused to say whether it is negotiating to purchase the Internet assets. --James Rowley in Washington at 202-624-1913 /jhr