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BRIEFLY

A deal for MCI to buy an IBM unit was altered.

October 19, 1985

MCI Communications and International Business Machines signed a definitive agreement for MCI to buy substantially all of the assets and operations of IBM's Satellite Business Systems. The final agreement, worth $373.6 million, drops a portion of an agreement in principle, reported June 25, that called for MCI to grant to IBM an additional 7 million warrants for MCI shares that would be exerciseable at $15 each. Instead, IBM will receive about 46.7 million shares, or 16.6% of MCI's common stock. The initial agreement called for MCI to issue IBM 45 million shares.

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