EC to clear the way for WorldCom and MCI merger

NEWS The European Commission (EC) is today expected to give its official approval to the $37bn (£23.1bn) merger between WorldCom and MCI. Two weeks ago, the EC, which is the EU's executive arm, admitted it had concluded negotiations with the two US telcos. However, the parties have been reluctant to reveal details of how the dispute was settled. Analysts say the most likely outcome is that MCI will sell all its Internet interests to a single buyer. Cable and Wireless tops most pundits' lists of likely suitors, but other North American and European companies - not all of whom are traditional telcos - cannot be ruled out. The EC is believed to have insisted that MCI cease to hold any assets which overlap with the business operations of WorldCom's UUNet subsidiary. WorldCom and MCI have said they will wait until US regulators are also satisfied with the revised merger agreement before making further statements.