Leucadia National Corporation, a holding company involved in a variety of businesses, is seeking clearance from the Federal Trade Commission (FTC) and the Department of Justice (DoJ) to acquire at least 50% of MCI’s common stock. Last year, Leucadia National Corporation acquired full control of WilTel Communications following its emergence from bankruptcy protection.
Under the Hart-Scott-Rodino (HSR) Act, the waiting period would expire on or about August 9, 2004, unless the FTC grants early termination or requests additional information. http://www.mci.com/
- In May 2004, MCI reported Q1 revenue of $6.3 billion, down from $7.2 billion a year earlier, including the consolidated results of Embratel. The decline reflects the adverse industry environment, as excess capacity and new technology adoption continue to pressure pricing. To address the issues, MCI outlined several initiatives aimed at lowering its cost structure and helping it to return to profitability in the second half of 2004.
- On 20-Apr-04, MCI emerged from Chapter 11 protection nearly two years after the resignation of WorldCom CEO Bernard Ebbers and the discovery of one of the largest accounting frauds in U.S. history. The company emerged from bankruptcy with about $5.7 billion in debt and $6 billion in cash.
- In August 2003, Leucadia National Corporation announced a deal to acquire all outstanding shares in WilTel Communications that it did not already hold at a 13.3% premium to WilTel’s stock price, based on the respective closing prices of the common stock of Leucadia ($37.56 per share) and WilTel ($14.06 per share) on 11-August-2003. Leucadia previously held a 47.4% interest in WilTel. Following the acquisition, WilTel became a wholly owned subsidiary of Leucadia.