IBM Will Sell Its MCI Stake for $400 Million : Technology: The computer giant calls the termination of its investment in the phone company a redeployment of assets.

International Business Machines Corp. said Friday that it plans to sell its $400-million stake in MCI Communications Corp., the second-largest long-distance phone company.

IBM obtained the MCI stake in 1986 when Satellite Business Systems, another long-distance company, was sold to MCI. IBM held a majority stake in SBS.

As part of the transaction, IBM obtained about 17% of MCI’s common stock. In 1988, it exchanged the stock for $677 million in cash and MCI preferred stock.

The transaction gave IBM a 10% voting stake in the phone company.

MCI’s shares closed down 37.5 cents at $26.75 after falling $3 Thursday on the over-the-counter market.

IBM said the preferred stock, which is not publicly tradeable or convertible into MCI common, will be sold privately.

IBM spokesman Rob Wilson said the planned sale is not a reflection of IBM’s view of MCI.

“We’re redeploying some assets. We do that on a regular basis,” he said.

Wilson said he could not comment on whether the planned divestment reflected a change in IBM’s view of the relationship between telephones and computers.

IBM at one time also owned phone equipment maker Rolm. It sold it to Siemens A. G. of Germany in 1988.