BT/MCI Merger Collapses

The rocky ride of the proposed merger between British Telecommunications and MCI Communications was finally put to an end today as BT pulled out of the deal following a further offer by rival bidders WorldCom.

This morning WorldCom was reported to have increased its bid for MCI from $30m to $37m. As a result BT, which initially made moves to merge with MCI, announced that it had agreed to sell its 20% stake in the company for $7bn. MCI will continue to sell BT’s communication services in the U.S..

WorldCom and MCI will merge subject to regulatory and shareholder approval.

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