WorldCom Bids for MCI
WSJ: Ring Leader: WorldCom's MCI Bid Alters Playing
Field For Telecom Industry
WSJ: BT's Global Strategy Hits Wall in WorldCom Bid
WSJ: Would WorldCom-MCI Deal Lift Tolls on Net?
WSJ: WorldCom Bid Raises Question: Who's Next?
TelecomAM: WorldCom Stages $30 Billion Takeover Bid for MCI
WP: WorldCom Rising Fast by Acquisitions
WP: Upstart Rival Surprises MCI With $30 Billion Merger Bid
NYT: Upstart Offering $30 Billion To Buy MCI, Using Stock
NYT: A Long-Distance Visionary
FCC Nominees
WSJ: Senators at FCC Confirmation Hearings Press
Kennard on Telecommunications
TelecomAM: Kennard Speaks For First Time of His Vision for FCC
BellSouth/Long Distance in SC
TelecomAM: Local Rivals Say S.C. Overlooked Key Facts
in Endorsing BellSouth Interlata Bid
FCC: Brief and Affidavits in Support of Application
by BellSouth to Provide Long Distance
Internet
WSJ: Junk Mailer Cyber Gains Short Reprieve From Internet Cutoff
NYT: Are Click-Wrap Terms of Agreement Enforceable?
Television
WSJ: Pearson to Buy All American, US TV Concern
InfoTech
NYT: Bob is Dead. Long Live Bob!
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* WorldCom Bids for MCI *
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Title: Ring Leader: WorldCom's MCI Bid Alters Playing Field For Telecom
Industry
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: Steven Lipin & John Keller
Issue: Mergers
Description: WorldCom, the nation's fourth-largest long distance provider,
unveiled a $30 billion bid to purchase MCI, a company more than three times
as large as WorldCom. WorldCom has revenues of about $7 billion/year. In
just the past three years, WorldCom has made five big deals totaling $20
billion plus a $2.4 billion stock deal to acquire Brooks Fiber Properties of
St. Louis.
Title: BT's Global Strategy Hits Wall in WorldCom Bid
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Gautam Naik
Issue: Mergers
Description: British Telecommunications' global strategy, dubbed Concert,
may unravel with WorldCom's bid to buy MCI. BT is unlikely to match
WorldCom's bid which is worth $9 billion more. BT recently scaled back its
original offer to buy the 80% stake in MCI which it does not already own. BT
stock rose yesterday in anticipation that BT will make a profit on its 20%
share of the US's #2 long distance carrier.
Title: Would WorldCom-MCI Deal Lift Tolls on Net?
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Thomas Weber & Rebecca Quick
Issue: Mergers
Description: If WorldCom is successful in its bid to buy MCI, the resulting
company may be within reach of dominating "the innards of the Internet." The
company would control 60% of all US traffic on the global computer network
and a large share of the traffic world wide. That control could allow
WorldCom to raise prices for Internet use. Earlier this year, WorldCom
started charging small Internet service providers for connections to its
network. WorldCom's vision is to change the traditional, "funky commune"
approach to exchanging data between ISPs (called peering) and turn it into a
capitalistic one. "Ultimately, that could signal the demise of the
ubiquitous $19.95-a-month unlimited access plans."
Title: WorldCom Bid Raises Question: Who's Next?
Source: Wall Street Journal
http://wsj.com/ (C1)
Author: Susan Pulliam
Issue: Mergers
Description: On Wall Street, the hot properties are competitive local
exchange carriers (CLECs), the companies building networks to compete for
local phone customers against incumbents like GTE, Bell Atlantic and other
Baby Bells. WorldCom (an obscure teleco interest from Malaysia) has
purchased two big CLECs recently (MFS Communications and now Brooks Fiber)
and its bid for MCI has pushed up the stock for Sprint as some guess that
British Telecom may make a bid for the #3 long distance carrier.
Title: WorldCom Stages $30 Billion Takeover Bid for MCI
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: WorldCom's takeover bid would result in the biggest merger in
US corporate history -- larger than Bell Atlantic/NYNEX ($25.6 billion) and
RJR Nabisco/Kohlberg Kravis Roberts ($25 billion in 1989). WorldCom's CEO
Bernie Ebbers says, "It is a superior offer to MCI shareholders to merge
with our company. We are offering a higher price, a higher premium, and a
higher performing stock than BT," Ebbers said, underscoring the "common
sense" he said the merger makes. "This is a shareholder issue. This is not a
management ego issue. This is what is best for shareholders." Referring to
MCI shareholders' interests, Ebbers was boastful of WorldCom's financial
performance since going public in 1989, especially as contrasted with BT and
MCI. "If you had invested $100 in WorldCom in 1989, it would now be worth
$3,122. That same $100 invested with BT in 1989 would be worth $190; with
MCI it would be worth $130. You aren't going to find many shareholders who
object to the kind of numbers being offered."
Title: WorldCom Rising Fast by Acquisitions
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/124l-100297-idx.html
Author: Paul Farhi
Issue: Telecommunications Merger
Description: Worldcom Inc., a 14-year old long distance company based in
a Southern city, has made a surprising $30 bill. bid for MCI Communications
Corp. This low-profile company is actually an aggressively expanding one,
due to many other company buyouts. Worldcom's CEO, Bernard Ebbers, wants to
place his company
at No.2 in the long distance business, with only British Telecommunications
in the way. Despite their low-key status in the game, Ebbers was confident
when he jokingly said, "After we finish the deal with MCI we might acquire BT."
Title: Upstart Rival Surprises MCI With $30 Billion Merger Bid
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/109l-100297-idx.html
Author: Mike Mills
Issue: Telecommunications Merger
Description: Proposing what could be known as the highest-priced merger
in history, Worldcom, a low-profile LD company based in Miss., made a
last-minute bid of $30 billion in common stock currency for Washington-based
MCI Communications Corp. in an effort to wrest it away from British
Telecomm. PLC, who also had plans to buy the company. The allure of the
offer hinges on the steady strength of Worldcom's stock. Combined, MCI and
Worldcom would become the No.2 long-distance giant, right behind AT&T. The
companies together would carry more than half of the Internet's traffic, and
be more than ready to take on the Bell regional companies. Worldcom said
that service would be unchanged, but wouldn't comment on the possibility of
layoffs at MCI. Nevertheless, the record-breaking merger has analysts
anticipating the arrival of competition in the monopolized local phone
market.
Title: A Stock Response
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/186l-100297-idx.html
Author: Brett D. Fromson
Issue: Telecommunications Merger
Description: Worldcom plans to buy MCI for about $30 bill. through simply
issuing more shares of common stock and then exchanging them for all the
outstanding MCI shares. This is a "deal for 90's", where common stock shares
are the currency of choice in mergers. The willingness of sellers to accept
shares in companies like Worldcom is the fuel behind this huge bid. Raghu
Ram, a telecom services analyst in N.Y. for Wheat First securities said,
"You can do a deal without any financing as long as you have currency the
other company will take, and the best telecom currency stock today is
Worldcom stock." Worldcom executives plan to exchange slightly more than one
share of Worldcom for every share of MCI. If their stock declines before the
deal is done, they would increase the number of shares to be traded for each
share of MCI, i.e. Worldcom wants to give MCI shareholders 45% of the new
company in exchange for their 100% ownership in MCI.
Title: Upstart Offering $30 Billion To Buy MCI, Using Stock
Source: New York Times, A1,D4
http://www.nytimes.com/yr/mo/day/news/financial/worldcom-mci.html
Author: Mark Landler
Issue: Telecommunications
Description: Worldcom Inc. put in an offer yesterday to buy MCI for $9
billion more than the one put forth by British Telecommunications.
Analysts believe that Worldcom's proposal could possibly pull MCI away from
a merger with British Telecommunications.
Title: A Long-Distance Visionary
Source: New York Times, D1,D4
http://www.nytimes.com/yr/mo/day/news/financial/worldcom-profile.html
Author: Steve Lhor
Issue: Telecommunications
Description: Bernard J. Ebbers, the chief executive of Worldcom Inc., has
helped pull together approximately 50 successful acquisitions to make
Worldcom the nation's fourth largest long-distance carrier. They are being
called by analyst "the communications company of the future" based on their
push to digitize telecommunications. A large part of Worldcom's recent
purchases has been based around their desire to build up a successful
digital network. "Worldcom's long-term strategy is to be an 'integrated
supercarrier,' a one-stop supplier of all manner of telecommunications
services."
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* FCC Nominees *
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Title: Senators at FCC Confirmation Hearings Press Kennard on
Telecommunications
Source: Wall Street Journal
http://wsj.com/ (B20)
Author: Scott Ritter
Issue: FCC
Description: At the confirmation hearing of would-be Federal Communications
Commission Chairman Bill Kennard, senators pressed for a commitment to
foster competition in the local phone market. Lawmakers are concerned with
the many mergers in the telecommunications industry -- including WorldCom's
bid for MCI -- and the rising prices for cable television service. They are
also concerned about and want to protect universal service subsidies to
ensure that phone rates for rural customers remain affordable. The Senate
Commerce Committee is expected to approve the FCC nominees on Tuesday with a
vote of the entire Senate following soon after.
Title: Kennard Speaks For First Time of His Vision for FCC
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: FCC
Description: Since many members of the Senate Commerce Committee don't like
FCC Chairman Reed Hundt (as he often whoops them playing Scrabble) there
questions the would-be chairman Bill Kennard seemed an attempt to find
differences between the two. Answering Sen John McCain (R-AZ) and Sen
Olympia Snowe (R-MA), Mr. Kennard said they would be "differences in degree
more than wholesale differences in opinion." He outlined three commitments
if he becomes chairman: 1) competition which he said must serve consumers,
2) community which is a reminder than the communications revolution must be
available to everyone, and 3) common sense -- writing rules only when
necessary and then making them clear and easy to understand.
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* BellSouth/Long Distance in SC *
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Title: Local Rivals Say S.C. Overlooked Key Facts in Endorsing BellSouth
Interlata Bid
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Long Distance
Description: The South Carolina Public Service Commission voted unanimously
to support BellSouth's entry into the long distance market in the state. But
competing telecos are beginning to voice their opposition. MCI, for example,
says hat of the 10,000 minutes of long distance calls terminated in the
state, just three were with a local competitor.
Title: Brief and Affidavits in Support of Application by BellSouth to
Provide Long Distance
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/in-region_applications/bellsouth/
bsappsc.html
Issue: Long Distance
Description: BellSouth is seeking FCC approval to provide long distance
service in South Carolina where it is the incumbent local service provider.
The FCC has made available the brief and four affidavits in support.
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* Internet *
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Title: Junk Mailer Cyber Gains Short Reprieve From Internet Cutoff
Source: Wall Street Journal
http://wsj.com/ (B20)
Author: Staff Reporter
Issue: Internet Content
Description: Cyber Promotions, a company that sends out 20 million junk
email messages a day, will have its Internet access restored by Apex Global
Internet Services after a judge ruled that the ISP had cut off service
without the 30 day advance notice stipulated by contract. Cyber Promotions
will have access until October 16; other providers -- including WorldCom
(where have I heard that name before) -- have dropped CP from there systems.
Title: Are Click-Wrap Terms of Agreement Enforceable?
Source: New York Times
http://www.nytimes.com/library/cyber/law/100297law.html
Author: Carl S. Kaplan
Issue: Internet
Description: Is it time to bite your tongue on your favorite chat line? If
the chat room in which you choose to converse has an "indemnification
clause" it might be time to think twice before engaging in unsightly typing.
Under this clause if your online victim chooses to bring a lawsuit against
you, the online provider in which you were using could turn around and sue
you as well. While many may be unaware of this policy, a variety of online
providers are now including an "indemnification clause" in their online
contracts. "The companies and others say that the clauses that put the
chatters on the hook are necessary to protect the publishers' interests
while encouraging chatters to speak responsibly. Critics, however, say such
clauses are unfair, hidden and may fail to deter reckless speech. Some
experts also questions whether the clauses are necessary or the contracts
enforceable."
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* Television *
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Title: Pearson to Buy All American, US TV Concern
Source: Wall Street Journal
http://wsj.com/ (B8)
Author: Helene Cooper
Issue: Television Economics/International
Description: Media giant Pearson PLC has agreed to buy All American
Communications, a Hollywood distributor of such shows as "Baywatch" and "The
Price Is Right." The deal is reportedly worth $373 million and will make
Pearson the major distributor of game shows in Europe and developing
nations. Woo, glad to know that the rest of the world will get to see the
bikini patrol.
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* InfoTech *
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Title: Bob is Dead. Long Live Bob!
Source: New York Times
http://www.nytimes.com/library/cyber/week/100297bob.html
Author: Laurie J. Flynn
Issue: InfoTech
Description: No, not the guy sitting in the cubicle next to you. Bob, the
technology developed by Microsoft in 1995 to make computers more personal -
literally! The program featured "cute" animated characters that showed up
on the user's screen when they pulled up windows, and would coach them
through short cuts and suggestions. Well due to a variety of annoying
aspects, soon after Bob's release he was pulled by Microsoft, executed and
left for dead. Now Microsoft is back at it again, attempting to personalize
computers with animated characters in an effort to increase communication
between user and machine. Human-factors specialist and director of
Microsoft's advanced user interface design group, Tandy Trower, says that by
"putting a personality onscreen that winks at you and can smile at you, we
are expanding the interface to allow for very natural ways for people to
share information with the computer." Although Bob was a flop, Trower says
that Microsoft has learned from its mistakes and is moving forward with
several projects that encompass the same goal.
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