OK--Back to business. This appeared this am. What impact on the Q?
MCI WorldCom, Nextel in Talks
Wired News Report
7:30 a.m. 6.Apr.99.PDT
MCI WorldCom, the telecom giant without
a wireless presence, is in talks to fill the
gap with the purchase of Nextel
Communications, sources said on
Tuesday.
Nextel is the last of the independent
national wireless phone companies, and
has been seen as a ripe takeover target
for more than a year. Speculation
intensified in January when rival AirTouch
Communications received acquisition
offers from two suitors and agreed to be
acquired by Britain's Vodafone Group.
The talks were described as "very
preliminary," and the chances of reaching
an agreement were put at no better than
50 percent.
Shares of Nextel (NXTL) have gained
nearly 68 percent since the beginning of
the year. Nextel's shares traded at
$41.375, up $1.75, in pre-market trading
on Tuesday, while shares of MCI
WorldCom (WCOM) fell $1 to $91.50 in
pre-market trading, traders said.
Among the factors that could prevent a
deal, according to sources: price, Nextel's
substantial debt load, and MCI WorldCom
chief Bernie Ebbers' aversion to
acquisitions that dampen the company's
earnings.
BTW: Mike, nice thought on the new thread. I'd stopped reading the old one. Couldn't take the volume.
Best,
JS |
