WorldCom Case Study1 By Dennis Moberg (Santa Clara University) and Edward Romar (University of Massachusetts-Boston) (The original of this document can be found at the Santa http://www.scu.edu/ethics/dialogue/candc/cases/worldcom.html#one. Clara University website at An update for this case is available at http://www.scu.edu/ethics/dialogue/candc/cases/worldcomupdate.html . Note that this update is not part of the syllabus for the PRM or Associate PRM exam. It is included for reference and explanation
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WorldCom Case Study Update 20061 by Edward J. Romar, University of Massachusetts-Boston, and Martin Calkins, University of Massachusetts-Boston In December 2005, two years after this case was written, the telecommunications industry consolidated further. Verizon Communications acquired MCI/WorldCom and SBC Communications acquired AT&T Corporation, which had been in business since the 19th Century. The acquisition of MCI/WorldCom was the direct result of the behavior of WorldCom's senior managers
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Re.: “MCI Takeover Battle” Case Analysis Attached is an analysis of “The MCI Takeover Battle: Verizon versus Qwest” I. STRATEGIC PROFILE This case profiles MCI’s merger debate between Verizon and Qwest in 2005. At this time, many other companies are merging due to the industry consolidation, therefore forcing MCI to keep up with its competition. MCI was acquired after a bidding war between WorldCom, British Telecom and GTE, with the winning bid being a $37 billion offer from WorldCom. MCI-WorldCom
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MCI Communications Corp. BACKGROUND MCI Communications Corp., a long distance telecommunications company, had been a sluggish performer in a buoyant market, and the management sensed a growing restlessness on the part of shareholders. To enhance the shareholders’ value, the company planned to repurchase some of its outstanding common stock. To guide the management in its decision, the company sought the advice of Lynch Investments in establishing a program to repurchase some of its outstanding common
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1. What are the strengths and weaknesses of Verizon, MCI and Qwest? MCI: well-established infrastructure and broad customer base, mass markets B slipping sales and earnings performance Verizon: robust financial statement, Verizon has a signed agreement with MCI and a proven track record of completing transactions that create value for shareholders, customers, and employees A+ right growth psition , Low international market share Damage on 911, carried out a series of divestitures
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Case Study 1 – And the Fraud Continues Heidi Janis Casazza Strayer University ACC/571 Dr. Timothy Franklin Deleanor Brown January 27, 2013 Case Study 1 – And the Fraud Continues Since the turn of the century, many financial scandals have been discovered, such as MCI Communications Corporation (MCI). Financial scandals can be minimized by the use of effective internal controls. According to Chao and Foote, effective internal controls reasonably prevent material misstatements in financial
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and when it purchased MCI in 1998, it was approaching the top. There were plans by the management to have the largest merger by communications companies but the US department of justice and the European Union foresaw an eminent period of monopoly, they stopped the move. Some companies were therefore left out in the merger of 2000. The company however experienced the biggest bankruptcy and accountancy fraud in corporate history. WorldCom was compelled to change its name MCI, one of the companies
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successfully completing 65 acquisitions. The two most prominent acquisitions were the MFS Communications acquisition that enabled WorldCom to obtain UUNET. UUNET was a major supplier of Internet services to business. The second major acquisition was MCI Communications because they became WorldCom’s largest provider of business and consumer telephone service. From 1983 to 2002 WorldCom developed from a humble long distance telephone company to the second-largest long distance telephone company in the
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1995, MFS communications in 1996, and the greatest merger which involved MCI communications. In 1998, WorldCom completed the merger with MCI at a cost estimated to be $40 billion. This was viewed as the greatest merger after brooks fiber properties and CompuServe which were valued at $ 1.2 and $ 1.3 billion respectively (Moberg 6). Another notable aspect in the history of WorldCom is the proposed sprint merger between the MCI WorldCom and Sprint Corporation in 1999. However, the merge never materialized
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Early investor Bernard Ebbers was named CEO the following year. Through acquisitions and mergers, LDDS grew quickly over the next 15 years. The company changed its name to WorldCom, achieved a worldwide presence, acquired telecommunications giant MCI, and eventually expanded beyond long distance service to offer the whole range of telecommunications services. WorldCom became the second-largest long-distance telephone company in America, and the firm seemed poised to become one of the largest telecommunications
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