GTE puts a spanner in the wheel of WorldCom's MCI bid
Thursday 08 January 1998
The objection to the deal, made this week, came as GTE revealed plans to expand its operations in Europe and raised the prospects of an alliance with British Telecom, which also saw its plans to merge with MCI collapse last year after the higher bid approach by WorldCom.
GTE made clear that it hoped to expand its relationship with BT, regardless of the outcome of the WorldCom bid for MCI. Had GTE won the bid, it would have cemented a close partnership with BT, though GTE said three-way merger talks were not seriously contemplated.
Mike Masin, GTE's vice chairman responsible for international strategy, said: "We'd like to continue to build the relationship with BT."
GTE, the third largest telecoms business in the US, said it had raised objections to the WorldCom link-up with MCI with the Federal Communications Commission, the regulator.
Mr Masin said the group had "expressed certain reservations," including the possibility that WorldCom could use its dominance to raise wholesale line charges to other operators.
GTE last summer entered the bidding frenzy for MCI with a $28bn all-cash offer. The bid remains on the table, though WorldCom raised its offer from $30bn to $37bn last November, enough to persuade the MCI board to recommend the deal to shareholders.
Mr Masin said there was still a possibility that WorldCom's bid would fall foul of US regulators, or that its share-price would drop, reducing the price paid to MCI's investors.
Geoffrey Macnab does not like the comedian's big screen debut
Look beyond the usual shows for the best festive telly
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
The battle for control of Stieg Larsson's £30m legacy
French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
Sun will 'flip upside down' within weeks, says Nasa
PAs cleared of fraud - and Nigella Lawson left reeling at 'ridiculous sideshow' of drug allegations and public dissection of marriage to Charles Saatchi
Burglar steals video tapes of child abuse, hands them into police
Paul Walker's daughter Meadow attends Justin Bieber Believe premiere
- 1 Bonuses for goals and top four finish as Luiz Suarez joins Premier League's top three earners
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 #Teamnigella: It’s the only side to be on
- 4 Christmas comes early: Justin Bieber is 'retiring from music'
- 5 Burglar steals video tapes of child abuse, hands them into police
- < Previous
- Next >
iJobs Money & Business
£Negotiable: Citifocus: High calibre individual with institutional client serv...
£120000 - £150000 per annum: Cornwallis Elt : Programme Manager, Strategy Lead...
£55000 - £120000 per annum: Pro-Recruitment Group: The Financial Services Tran...
£600 - £700 per day: Harrington Starr: Client based in West London is looking ...