Who’s Calling
MCI Communications is the most sought-after acquisition target in the telecommunications industry. Wednesday’s bid from GTE brings the number of MCI suitors to three. Here is a look at what each is offering:
British Telecommunications (Nov. 3, 1996)
* Headquarters: London
* The proposal: BT’s original offer--0.54 share of BT stock plus $6 in cash for each share of MCI stock--was valued at $24.7 billion, or $35.97 per share. The proposal was later revised to about $20.3 billion after MCI incurred heavy losses in its effort to expand into local phone markets.
* Background: BT and MCI have a history of working together--BT already owns a 20% stake in MCI.
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WorldCom (Oct. 1, 1997)
* Headquarters: Jackson, Miss.
* The proposal: WorldCom is offering $41.50 in WorldCom stock for each share of MCI. The total value of the deal, including assumption of some debt, is valued at about $30 billion.
* Background: WorldCom has been snapping up companies that provide a wide array of telecommunications services in an effort to offer one-stop shopping.
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GTE (Oct. 15, 1997)
* Headquarters: Stamford, Conn.
* The proposal: The nation’s third-largest local phone company made an all-cash offer of $40 a share, or $28 billion, for MCI stock.
* Background: GTE is a diversified telecommunications company with local, long-distance and Internet services. GTE’s strength in local markets would complement MCI’s long-distance business.
