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MCI, Nextel: no deal
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May 6, 1999: 6:09 p.m. ET
Acquisition would have linked long-distance carrier with wireless firm
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NEW YORK (CNNfn) - MCI WorldCom and Nextel Communications Inc. confirmed Thursday that the companies have terminated merger negotiations.
Rumors had been swirling for weeks that MCI (WCOM), the No. 2 U.S. long-distance carrier, would seek to gain a presence in the wireless market through an acquisition of Nextel (NXTL).
Although the companies had never officially confirmed they were involved in merger negotiations, reports surfaced Wednesday that the two companies called off the talks after failing to agree on terms of a deal that analysts speculated would be worth $13.1 billion.
"After reviewing the possibility of a combination with Nextel Communications Inc., MCI WorldCom has determined not to pursue a bid for the company at this time," MCI said in a statement.
Although long-distance carriers are increasingly discovering the value in maintaining a foothold in the wireless communications market, analysts said a deal with Nextel would have hurt MCI's earnings in the near term.
MCI shares fell 5 to close at 84-5/8 in Thursday trade. Nextel shares slipped 3/4 to 35-1/8.
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MCI WorldCom
Nextel
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