BT/MCI fix merger agreement – at last

BT/MCI fix merger agreement – at last
Jon Mainwaring BT and US telecoms operator MCI is set to go ahead with their merger into Concert, completing the deal by the end of 1997. BT, which already owns 20 per cent of MCI, will now be paying ?8.5bn for the outstanding shares in the company, ten per cent less than originally agreed. The new agreement saves the merger, which had been under threat ever since BT discovered in July that MCI had made an $800m loss because of problems breaking into local telecoms markets in the US. “This has been a tough time for both executive teams,” said BT’s chairman Sir Iain Vallance, “but the results are a reflection of our professional relationship, built up over our four years of partnership”. Both companies criticised “regulatory issues and monopoly obstructions” which they blame for preventing full competition. “BT and MCI will continue to look for ways to reduce operating losses associated with local market entry,” they said.


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