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.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 5 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
UK weather: 'Coldest night of the year' tonight as freezing temperatures plummet to -10C
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Douglas Carswell tells Ukip to stop blaming foreigners as youth poll shows Nigel Farage is even less popular than Nick Clegg
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...