MCI WorldCom buys Sprint for over $100bn

NEWS MCI WorldCom (MCI) and Sprint have signed a $129bn deal - $115bn in stock plus $14bn in debt and preferred stock - making them partners in the largest merger agreement in corporate history. Once ratified, MCI will control over 30 per cent of the US long-distance telephony market, and will become the main threat to AT&T's number one position. Bernard J. Ebbers, president and CEO of MCI, said that the deal will see the company gain a 'nationwide footprint with common technology', giving it the ability to deliver next generation technology at a faster pace than previously possible. Eric Owen, research analyst at IDC European Telecoms said: "The challenge to AT&T is already there. With MCI already holding an interest in local and long distant calls, the main reason behind the deal is to gain a presence in the wireless market." However, Owen warned that with Deutsche Telecom and France Telecom being minority shareholders in Sprint, a clear statement of its international strategy will be needed to sustain momentum in Europe. Simon Craven, spokesman for BT said: "We expect to see the consolidation of this industry, leaving four or five major players in the market. We also expect it to continue to be as competitive as ever."