MCI has yet another suitor.
According to published reports, trading in MCI Communications Corp. stock was suspended following a reported bid for the company by GTE Corp.
The Dow Jones News Service and the Washington Post say the reported deal would be worth more than $25 billion. WorldCom, Inc., recently offered $30 billion for MCI, but would pay for the takeover by issuing stock; MCI is reportedly worried, however, that the stock would not retain its value. Earlier this year, long-time suitor British Telecommunications plc offered to pay $21 billion in stock and cash.
While BT seems to be backing off from its offer, WorldCom, the nation's fourth largest long-distance phone company, is still in the running. According to published reports, the GTE takeover would be the biggest all-cash deal ever, topping RJR Nabisco, Inc.'s $25 billion sale in 1989.
MCI stock was up 2% on the NASDAQ and GTE stock was down 4% on the New York Stock Exchange just before trading in both was halted following news of the bid.
According to Dow Jones, the GTE board was set to meet today to vote on the offer. The GTE offer was believed to be in the range of $37 or $38 a share, Dow Jones reported.
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