Reactions in London and New York on British Telecommunications Plc’s major alliance with MCI Communications Corp (see front) came out as mirror images, with MCI shares rising and British Telecom falling as analysts worried that building up the joint venture would put a crimp on the UK company’s profits and possibly dividends – reaction that is completely misplaced, because the venture clearly transforms British Telecom from an embattled slow-growth utility into a potentially much higher rated growth stock in the medium term: the partners – MCI gets all the Americas, including the Caribbean, BT the rest of the world, say they expect the global joint venture to turn a profit by 1996, but they look for benefits from improved sales immediately; the joint venture will open a headquarters either in Washington or London with 1,000 people transfered from positions in both companies; they see 3,000 employed by 1997.
