Article Abstract:
Cultural differences between MCI and Worldcom is a potential hurdle to their pending merger, according to analysts. Both telecommunications companies today will propose directors of the new company. MCI's board has a more traditional and corporate composition, compared to the Worldcom board staffed entirely by entrepreneurs, one observer said. Executives said the new company's 17-member board would consist of six officers from the combined corporation, eight outsiders appointed by Worldcom and three outsiders appointed by MCI. At least one of the proposed board members does not participate on either company's board. Shareholders are expected to vote overwhelmingly for the $37 billion pact, which was first announced in Nov 1997, but the agreement to merge will last for at least a few more months. European and US regulators, meanwhile, have widened their investigations into the deal's antitrust implications because MCI and Worldcom are two significant Internet traffic carriers.
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Article Abstract:
Despite recent setbacks, the Bell Atlantic Corp. stands poised to become a major player in long-distance telephone and high-speed data services. The largest of the Baby Bells, the Bell Atlantic Corp., last month lost out on its bid to acquire Airtouch Communications, a leader in cellular communications. This setback, along with AT and T's recent agreement with Time Warner to deliver local phone service over cable television lines in Bell Atlantic's home turf, should spell trouble for the Baby Bell. However, Bell Atlantic is still in a commanding position in both local telephone, cellular and high-speed data transmision. This position has prompted investors to bid up its stock price by 10%. Analysts are calling Bell Atlantic one of the leaders in the premier growth industry in the United States, telecommunications.
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Article Abstract:
Frontier Corp's CEO, Joseph P. Clayton, hired in 1997, has already made a difference. Previous to 1998, Frontier, which changed its name from Rochester Telephone in 1995, had not matched its quarterly earnings expectations in two years, but in each of this year's first two quarters, the company's targets were exceeded by a penny a share. Clayton's mission is to revitalize Frontier and sell it. Frontier would probably be primarily attractive to a bigger company because of Frontier's 1996 acquisition of part of a fiber-optic network being built by Qwest Communications International. Frontier's local operations are problematical. Industry observers say a foreign carrier would be the most probablebuyer, but a foreign carrier might not want to operate a local telephone company in Rochester.
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