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

To: Teddy who wrote (2864)	7/14/1998 1:05:00 AM
From: MGV	Respond to of 11568

Finally, Acuff called Worldcom Inc. (WCOM) the "cheapest play on the Internet in the world today." Good stuff.

To: Teddy who wrote (2864)	7/14/1998 1:06:00 AM
From: Anthony Wong	Respond to of 11568

Dow Jones: MCI Is Expected To Sell Internet Assets To Cable & Wireless July 13, 1998 8:49 PM NEW YORK -(Dow Jones)- MCI Communications Corp. is leaning toward selling all of its Internet-related operations to British carrier Cable & Wireless PLC in a deal that could be worth as much as $2 billion, sources close to the talks told the Associated Press Monday. Washington-based MCI (MCIC) is trying to obtain approval for its planned $37 billion merger with WorldCom Inc. London-based Cable & Wireless announced a deal to buy the wholesale section of MCI's Internet businesss back in May but that pact was scuttled after European regulators said MCI would have to sell its entire Internet business. The European Commission last week cleared the merger, provided that the companies sell all of MCI's Internet business. The commission's ruling calls for the buyer to be approved by both European Union and U.S. regulators. MCI is expected to disclose the name of the buyer after the Justice Department announces its decision on the MCI-WorldCom marriage, an announcement that could happen as soon as this week, sources told the AP. U.S. and European regulators have looked closely into whether the combined company would crimp competition and possibly raise prices in the Internet "backbone" business. Internet backbones are high capacity networks that serves as the main arteries of the global computer network. Cable & Wireless in May said it would buy MCI's Internet backbone business for $625 million. Now, MCI is expected to sell to Cable & Wireless contracts for all of its business and residential Internet customers _ a move that would get MCI out of the retail Internet business. It also would satisfy the EU's condition for approving the WorldCom-MCI merger. "It is better for MCI to sell the Internet assets in one chunk because it instantly creates another Internet competitor, which would make for a more competitive marketplace," said Jeffrey Kagan, of the Atlanta-based consulting firm, Kagan Telecom Associates. AT&T Corp., PSINet Inc. and IXC Communications were also interested in buying MCI's Internet business, analysts said. MCI and WorldCom still must meet a set of conditions, according to officials on both sides of the Atlantic. They include assurances by the two companies they won't try to regain the customers they're giving up and the potential divestiture of MCI's Intranet corporate networking business. WorldCom has been described by some analysts as the AT&T of the Internet. In a short period of time, WorldCom has amassed ownership of an enormous chunk of the Internet. In 1996, WorldCom bought UUNet Technologies Inc., the biggest operator of local Internet-access points in the world. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.