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To: Anthony Wong who wrote (3095)	7/30/1998 10:49:00 PM
From: Mazman	Respond to of 11568

* Off Topic * To Anthony and thread -- the website for Communications Today has just posted a series of brief analyst reports on the recent telecom mega mergers. commtoday.com regards, mazman

To: Anthony Wong who wrote (3095)	7/31/1998 6:14:00 AM
From: ANANT	Respond to of 11568

AW & all: MCI Revenue Increases by 11%, But Profit Sinks on Start-Up Costs interactive.wsj.com. Excerpts: The U.S. Justice Department and the European Commission cleared MCI's plan to combine with WorldCom two weeks ago, after MCI agreed to shed its Internet assets to Cable & Wireless PLC. The company is still awaiting final approval from the Federal Communications Commission and three states. But MCI said it expected to close the merger and launch MCI WorldCom in the third quarter. The company also continues to expand internationally, announcing on Wednesday that it had purchased a controlling interest in Embratel, Brazil's long-distance carrier, for $2.26 billion. MCI said net income fell 30% due to start-up expenses in the U.S. local market, pricing pressures in long-distance, and expansion costs. Net income dropped to $195 million, or 26 cents a diluted share, compared with $280 million, or 40 cents a diluted share, a year earlier. ---------------------------------------- The company said its data and Internet services, information technology, conferencing and managed services drove growth. Local-service revenue rose 70% over the year-earlier quarter, it said. Data and Internet revenue jumped nearly 24%, spurred by booming sales in such high-speed data services as frame relay. Its MCI Systemhouse unit, a systems integration business acquired from a Canadian company three years ago, now pulls in 40% of its sales from the U.S. market. --------------------------------------------------

To: Anthony Wong who wrote (3095)	7/31/1998 6:17:00 AM
From: ANANT	Read Replies (1) \| Respond to of 11568

AW & all: Some Recent Telecom Deals Aren't Clanging Loud Bells interactive.wsj.com. Excerpts: Results Are a Mixed Bag After telecom companies have announced big deals, their stocks have had a decidedly mixed performance. Here is how six stocks fared from their deals' announcement date to Wednesday: Company Date Announced Share(s) Price S&P Industry Group Bell Atlantic 1 April 22, 1996 +36 +75 +56 SBC 2 April 1, 1996 +66 +74 +61 Ameritech 3 May 11, 1998 +8 +2 +3 MCI 4 Nov. 10, 1997 +57 +22 +40 WorldCom 5 Nov. 10, 1997 +72 +22 +40 AT&T 6 June 24, 1998 -2 -1 +4 1 -- Agrees to acquire Nynex. Deal closes Aug. 14, 1997. 2 -- Says it will buy Pacific Telesis. Deal closes April 1, 1997. 3 -- Agrees to be bought by SBC. Deal pending. 4 -- Agrees to be bought by WorldCom. Deal pending. 5 -- Agrees to buy MCI. Deal pending. 6 -- Says it will buy cable company, TCI. Deal pending. -------------------------------------------------------------------------------- WorldCom Inc. and MCI Communications Corp. announced merger plans in November. With the deal nearing a closing, WorldCom shares are up 72% and MCI shares are up 57%, compared with 22% for the S&P 500 and 40% for long-distance stocks in the past nine months. -------------------------------------- Of course, most fund managers haven't beaten the S&P, either. The Wall Street types who recommend telecom stocks say investors shouldn't be alarmed by this lackluster performance. They argue that it is too soon to judge, note that investor fears about new competition in the local-phone market have hurt stocks in the short term, and say the long-term upside is buoyant. ------------------------------------------------------ Fund managers say a big takeover needs time to slash costs and mesh businesses, and then more time for the stock market to catch on. "Over time, cost synergies do benefit value," insists Robert Gensler of T. Rowe Price Associates. --------------------------------------- It will take months before a verdict is reached on Ameritech's pact to be bought by SBC and on AT&T's move to acquire TCI. Investors might well hope for a fate similar to WorldCom-MCI. The deal isn't done, but lately it sings. It was valued at $37 billion, or $51 a share, for MCI in November. By Wednesday's close, thanks to a sharp rise in WorldCom's price in nine months, it has swelled to $50.1 billion, or $67.33 for each MCI share. Who wouldn't gloat? "We're both from the same cloth, we've been able to come together quickly," says MCI spokesman Frank Walter. "MCI-WorldCom is very well-positioned." ----------------------------------------------

To: Anthony Wong who wrote (3095)	8/2/1998 8:08:00 AM
From: ANANT	Read Replies (1) \| Respond to of 11568

AW ansd all: WorldCom Readies a Record Investment-Grade Deal And Corporate Bond Yields Rise in Anticipation interactive.wsj.com. Excerpts: WorldCom, which has shaken up the telecommunications business with its aggressive acquisitions, is about to do the same in the corporate bond market as it readies what could be the biggest investment-grade issue ever. The company, based in Jackson, Mississippi, plans to market $3-$4 billion of debt this week through a slew of underwriters led by Salomon Smith Barney. And, market players say, if there's enough demand, the offering could be increased and total up to $6 billion, the size of WorldCom's shelf registration. ------------------------------------------------- To be sure, WorldCom has places to put the money to work. The company is in the midst of buying long-distance carrier MCI. It has to pay British Telecommunications $6.94 billion to buy BT's MCI shares at $51 each. WorldCom will also use its own stock to buy the publicly owned shares of MCI. The deal, which is expected to close this quarter, awaits approval from the Federal Communications Commission and three state regulators. WorldCom may also need cash to fund future acquisitions. Just last week, MCI announced it would buy Brazil's long-distance carrier, Embratel, for $2.3 billion. MCI bought the company as part of an auction conducted by the Brazilian government. (For more on this, see International Trader.) It's unclear how the acquisition will be funded, and WorldCom officials declined to comment. -------------------------------------------------- I'm probably going to buy [WorldCom debt] on a new-issue basis. It's probably the No. 1 credit you want to own in telecom," says Cathy Bunting, portfolio manager of the New England Bond Income fund. ----------------------------------------------