View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 19, 1997updated 03 Sep 2016 2:29pm


By CBR Staff Writer

The battle for control of MCI Corp is so closely poised that analysts are waiting this week for the first new initiative to break the deadlock. As things stand, the issue facing MCI shareholders is a share offer currently worth $41.50 from WorldCom Inc compared with a cash bid of $40 for GTE Corp. WorldCom’s bid is vulnerable should its share price fall while GTE’s own share price has dipped on fears of the level of debt it will assume if it is successful. What would bolster the GTE bid would be a move from British Telecommunications Plc whose initial agreement to buy MCI sparked the current auction. Most observers expect BT, which has far more to gain from a successful GTE bid, to help break the deadlock by offering to put part of its enormous cash reserves into the merged company. With an existing 20% stake in MCI, it would further boost its stake in the US market – the reason for its move for MCI in the first place – and relieve GTE of its debt problems. But while the official WorldCom position is that its shares have a far better track record than those of its rivals, analysts expect that it will eventually be forced to improve its offer if it is to see of the GTE bid. Either way, the battle for control of MCI still has a long way to run and the bids are sure to go higher.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.