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To: Wally Mastroly who wrote (4510)	5/21/1999 5:32:00 AM
From: Anthony Wong	Respond to of 11568

MCI Worldcom keen on AAPT -source Friday May 21, 12:46 am Eastern Time By Daniel Morrissey SYDNEY, May 21 (Reuters) - The number two U.S. long distance telephone company MCI WorldCom Inc, which wants to break into the wireless phone business, has had merger talks with Australian carrier AAPT Ltd , a source close to MCI said on Friday. AAPT, which is the subject of a A$1.5 billion hostile bid from Cable & Wireless Optus Ltd , will shortly start the installation of a broadband wireless network using local multipoint distribution services (LMDS) technology. MCI WorldCom's Australian unit, which is building a fibre optic network, is interested in expanding its customer base and considers AAPT could be the vehicle to achieve this strategy. The cultures of the two companies are similar, with MCI WorldCom being a founding shareholder in AAPT when it was established in 1991. AAPT chief executive Larry Williams, who is bitterly opposed to the C&W Optus bid, first came to the company on secondment from MCI. The MCI source said that MCI WorldCom was interested in taking a stake, even a friendly merger, and has had talks with AAPT officials. ''They are very interested in AAPT,'' the source said. In Clinton, Mississippi, Bernie Ebbers, the chief executive of MCI WorldCom, told shareholders on Thursday that the company was planning to get into the wireless phone business, though it was not taking any immediate steps. On Monday, MCI WorldCom's Australian managing director, Susanne Campbell, was non-committal when asked if the company was interested in acquiring a stake in AAPT, the third largest telecommunications carrier in Australia. ''I can't answer yes or no,'' Campbell told Reuters. Telecom New Zealand acquired 9.9 percent or 29 million shares of AAPT's issued capital on Monday, but has remained silent on its future intentions except to say that its stake was designed to preserve its strategic options.