WorldCom Gets FCC OK to Buy Intermedia

WorldCom Inc. said it had cleared the last major regulatory hurdle to acquiring Intermedia Communications Inc., but the company still faces a legal battle over the purchase--which includes a controlling stake in Digex Inc. A Federal Communications Commission spokeswoman confirmed the agency had given its approval but had no details on the vote or whether any conditions were attached. WorldCom’s Intermedia purchase would give the long-distance telephone company a 55% equity stake and 94% voting stake in Digex, which monitors Web-hosting performance and provides Internet connections as well as storage for Web sites. Digex minority holders have sued five directors, along with WorldCom and Intermedia, to block the merger amid questions about whether they acted improperly when they supported Intermedia’s proposed merger with WorldCom by waiving the legal rights of the Digex minority holders. WorldCom rose $1.19 to close at $22.50 and Digex gained 81 cents to $29.55, both on Nasdaq.