British Telecom to Buy MCI’s Concert Stake

British Telecommunications said it will buy MCI Communications Corp.’s 24.9% stake in Concert Communications, the companies’ international phone services venture. The companies have not agreed on a price. The move follows WorldCom Inc.’s plan to pay $7 billion in cash for British Telecom’s 20% stake in Washington-based MCI as part of WorldCom’s planned $37-billion acquisition of the No. 2 U.S. long-distance company. Concert, which has $2 billion in sales under contract and 3,400 corporate customers, is a key part of British Telecom’s expansion strategy. Full ownership of Concert would make London-based British Telecom more attractive to any U.S. partner that may balk at joining a venture with rival MCI. MCI’s sale of its Concert stake won’t hurt Jackson, Miss.-based WorldCom’s plans to build international phone networks, analysts said. BT’s American depositary receipts fell 31 cents to close at $78.75 on the New York Stock Exchange. MCI shares fell $1.19 to close at $40.31, also on the NYSE.