MCI Learns Too Late to Shut Its Mouth.
Published:
7 June 1999 y., Monday
Sometimes a well-placed "no comment" can bail a company out of a strategic jam. On May 25, Company Sleuth reported that MCI WorldCom had registered for the domain name "skytelworldcom.com." That fired up old rumors that MCI was sniffing around to buy wireless paging company Skytel Communications. MCI had plenty to say on the subject. Too much, it turns out, according to the Wall Street Journal_s Rebecca Blumenstein and Nicole Harris. First, it blamed the snafu on a rogue employee. Then it asked domain-name keeper Network Solutions to delete the address. By sundown, it thought better of it. "We may choose to use it in the future," the company said in a statement. The future came three days later, when MCI announced it would acquire Skytel for $1.3 billion. Now investors are ticked off, and the SEC wants answers. If only MCI had kept its mouth shut, wrote Blumenstein and Michael Schroeder in today_s edition. Responding publicly obligated MCI to make a full, truthful statement. The SEC is investigating whether the company_s verbal tango violated any securities laws and is asking MCI for all documents related to the acquisition. Partner-to-be Skytel learned a lesson from it all. When Schroeder and Blumenstein called for comment, Skytel wisely demurred.
Šaltinis:
The Industry Standard
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
The EBRD is making a €4 million equity investment in Geofoto, a Croatian geodetic company offering mapping, geodetic survey, photogrammetry, geoinformatics and aerial survey services, to support its drive to expand operations on international level.
more »
Nordea came out of 2009 in an even stronger position, despite one of the most challenging years for decades. Risk-adjusted profit increased 22% and our capital position and cost of funding are among the best in Europe.
more »
MEPs gave the green light on Thursday for EU funding to help Europe's unemployed start up small businesses.
more »
MEPs are deeply concerned about the long-standing and growing presence of al-Qaeda, and the deteriorating security, social and economic problems in Yemen, which they think could destabilise neighbouring countries.
more »
At the start of a new decade, Sub Saharan Africa is reeling from the effects of three major global crises – food, fuel and financial – that have reversed many of the economic achievements of the last 10 years and left some growth projections at levels below those of 30 years ago.
more »
The 5th High-level Seminar of Central Banks in the East Asia-Pacific Region and the Euro Area was jointly organised by the European Central Bank and the Reserve Bank of Australia, in cooperation with the Hong Kong Monetary Authority.
more »
The EBRD and European Fund for Southeast Europe are boosting the availability of financing to private businesses in Moldova with a $10 million loan to ProCredit Bank in Moldova for on-lending to micro and small enterprises.
more »
The EBRD is supporting the development of the retail infrastructure in Croatia with a €68 million loan to finance the construction of a modern shopping centre in Split, the second largest city in Croatia.
more »
The European Bank for Reconstruction and Development has agreed to sell its 15 percent stake in OAO Swedbank Russia to its parent and major stakeholder, Sweden’s Swedbank AB, a move which would give it full ownership of its Russian subsidiary.
more »
The Ministers of Industry took the first steps in San Sebastián today to make the electric vehicle a reality in Europe and agreed that European institutions, with the EC at the head, should lead a common strategy on electric vehicles.
more »