WorldCom Inc has finally completed the acquisition of CompuServe Inc from H&R Block Inc, acquiring the online service in a stock- for-stock transaction valued at approximately $1.3bn, based on Friday’s closing price. The merger, which was accounted for as a purchase accounting transaction, saw each share of CompuServe stock converted into the right to receive 0.40625 shares of WorldCom common stock. Originally announced in September (CI No 3,242), the deal was finished off Saturday after its approval by CompuServe stockholders at a special meeting held Friday. H&R Block, which owned about 80% of CompuServe, voted all of its shares in favor of the transaction. The closing of the deal leaves H&R Block with an approximate 3% stake in WorldCom and it says it is evaluating various options to convert its holdings into cash, which it expects to do shortly. As part of the deal, WorldCom acquired ANS Communications from America Online Inc and has entered into five-year contracts with AOL under which its subsidiaries will provide network services to the company. As part of that transaction, AOL received CompuServe’s interactive services division and $175m in cash, while WorldCom keeps the CompuServe network services division. German publisher Bertelsmann AG and AOL have also completed their joint takeover of the European division of CompuServe.
