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MCI Reportedly Seeking Bidders for Net Unit

June 12, 1998|From Bloomberg News

WASHINGTON — MCI Communications Corp. plans to seek other bidders for its wholesale Internet operations and related assets in an effort to get regulatory approval for WorldCom Inc.'s $41.8-billion purchase of MCI, Cable & Wireless said Thursday.

The statement follows a lawsuit filed Wednesday by Cable & Wireless, the No. 2 British phone company, to protect its agreement to buy MCI's wholesale Internet unit for $625 million in cash. The suit was filed in federal court in Washington, where MCI is based. MCI declined to comment on Cable & Wireless' claims.

The British company wants to make sure it gets MCI's fast-growing Internet operations, which would strengthen its position in the lucrative U.S. phone market.

Cable & Wireless said it learned of the plans from MCI and WorldCom executives.

MCI shares fell $1.50 to close at $48.63. WorldCom shares fell $1.81 to close at $42.25. Both trade on Nasdaq.

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