By Heather McLean, 30 July 2002 13:50
NEWS Shares in WorldCom slumped on European exchanges this morning after Nasdaq officials said they will delist the company when the US opens for business today. Nasdaq requires all companies listed on the exchange to keep up-to-date with filings at the US Securities and Exchange Commission. WorldCom has not done this. In Frankfurt, shares in WorldCom traded at E0.19 cents this morning, 24 per cent lower than the Nasdaq's closing price of $0.24 cents last night after a healthy 29 per cent rally yesterday. Arnab Roychowdhury, equity analyst at Barclays Stockbrokers, said not all WorldCom's shares will be dumped today as it will continue to run as a business under Chapter 11 bankruptcy protection. He said: "Shares in WorldCom have reached such a low point, investors feel if this company is going to stay around it's going to be a long term deal. They can buy with a small amount of money upfront and possibly end up with huge rewards at the end, a bit like the lottery." Shares in WorldCom rallied yesterday after the business announced its chosen executives from corporate turnaround firm, AlixPartners. Gregory Rayburn will become WorldCom's chief restructuring officer and John Dubel will take over the position of chief financial officer. As part of the company's plans for recovery, its loss-making wireless division will be shut by September saving the company around £700m each year. WorldCom has reached agreements with major US service providers to take over the management of around two million of its wireless customers. Alltel, AT&T Wireless, Verizon Wireless and one other unnamed carrier are involved in the transfer deal. The bulk of workers in the division have already been fired as part of WorldCom's challenge to rid itself of 17,000 employees.
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