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Bellsouth bids for Sprint
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October 4, 1999: 7:09 p.m. ET
Late bid aims to top rival offer from MCI Worldcom
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LONDON (CNNfn) - BellSouth has made an eleventh-hour bid for rival Sprint, topping the reported offer from MCI Worldcom, according to press reports Monday.
BellSouth has offered $72 billion in cash and stock, topping a $65 billion all-stock bid from MCI, according to the Wall Street Journal.
None of the companies involved would comment, but the Journal said its board met Sunday and is expected to go with the lower MCI offer. Both Sprint and MCI are due to formally vote on the proposed deal Monday.
The Journal reported Sprint's chairman William Esrey favors the lower bid because of the strategic fit, and argued that measuring MCI's stock price over a 20-day average narrowed the gap between the two bids.
But Sprint partners Deutsche Telekom and France Telecom, which both own 10 percent of Sprint, are reportedly opposed to the MCI offer because of the antitrust concerns it raises in Europe and its potential to destroy the value of the Global One venture they have with Sprint. MCI Worldcom has been creating its own European network.
Telekom's chief executive Ron Sommer and France Telecom's chief Michel Bon both have seats on Sprint's board.
The Journal also reported that Deutsche Telekom's management would meet Monday to discuss an offer for the remaining 90 percent of Sprint it doesn't own.
Deutsche Telekom refused to comment to CNNfn on any plans for Sprint.
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