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

To: JM who wrote (4175)	4/15/1999 5:29:00 AM
From: JM	Read Replies (1) \| Respond to of 11568

NEW YORK, April 14 (Reuters) - MCI WorldCom Inc. (Nasdaq:WCOM) , the No. 2 U.S. long distance company, said it is well-positioned to compete in the telecommunications industry, even without a wireless phone business. MCI WorldCom has been in talks in the past few weeks to acquire wireless phone company Nextel Communications Inc. (Nasdaq:NXTL) , sources familiar with the situation said. But MCI WorldCom said it does not need wireless to compete successfully now. "Wireless is a segment we continue to evaluate, should there be an appropriate fit. However, with our fast-growing data, Internet and international operations, MCI WorldCom today is very well-positioned in the telecommunications industry," MCI WorldCom spokesman Frank Walter said. Bloomberg news on Wednesday quoted MCI WorldCom vice chairman John Sidgmore as saying, "We don't think it's imperative we do something in wireless right now, but in the next couple of years we do." Sidgmore spoke at the Andersen Consulting Global Communications Forum in Arizona. Industry analysts said MCI WorldCom eventually may need to move into the wireless industry to grab part of that fast-growing market. As wireless phone service becomes less expensive, more and more customers are using wireless phones instead of landline phones. MCI WorldCom's main rival, AT&T Corp. (Nyse:T) , has aggressively pushed its wireless business and seen rapid gains in its customer base. A potential deal with Nextel could be blocked by several factors, including disputes over price and concerns that buying money-losing Nextel would hurt MCI WorldCom's earnings, sources said. Analysts said the acquisition of Nextel could hurt MCI WorldCom's near-term profits by about 25 percent. MCI WorldCom in January briefly considered buying AirTouch Communications Inc. (Nyse:ATI) but decided against making a formal bid. Shares of MCI WorldCom fell $3.31 to $89.25, while Nextel added $1.50 to $37.50. Both stocks trade on Nasdaq. Quote for referenced ticker symbols: WCOM, T, NXTL, ATI © 1999, Reuters