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To: Pallisard who wrote (5571)11/25/1998 2:22:00 AM
From: kolo55  Read Replies (1) | Respond to of 27311
 
I can't see MCI buying an equipment company.

Even if it is batteries. If anything, the aftermath of the Lucent spin-off by AT&T shows the folly of a telecom service provider trying to manufacture and sell hard goods to (potential) competitors.

I think the fund established by MCI and other telecom companies, is trying to mirror the successes companies like Intel and Microsoft have had buying stock in smaller companies with promising technology. If you are already reviewing technology options for the purposes of purchases, why not take an equity participation? Well, as long as you don't control the smaller company to the point where you cause red flags in the eyes of customers who happen to be your competitors.

Anyway, this is my opinion, and others may have other views.

Paul