In a move expected by financial analysts, MCI WorldCom Inc. announced plans last week to acquire debt-laden Wireless One.
Jackson-based Wireless One, the largest wireless cable operator in the Southeast, has been mired in financial difficulty since the company filed for bankruptcy protection in February and sought to eliminate $327 million of debt.
Under the amended plan, which must be approved by bankruptcy courts and the Federal Communications Commission, Wireless One (NASDAQ: WIRL) will become a wholly-owned subsidiary of MCI WorldCom (NASDAQ: WCOM).
“We are pleased to announce this amended plan to become a part of MCI WorldCom,” said Henry Burkhalter, president and CEO of Wireless One. “MCI WorldCom has the resources to accelerate our strategies to deploy Wireless One’s high-speed two-way wireless data transmission services to businesses in the company’s 11 southeastern states footprint. Our customers, employees, suppliers and channel lessors should all benefit from this association with MCI WorldCom during these exciting and rapidly changing times in the wireless communications industry.”
Wireless One stockholders will receive approximately $22.6 million, or $1.31 per share from MCI WorldCom. On July 20, the day of the announced, proposed acquisition, Wireless One shares were traded at $1.28. As of July 21, Wireless One stock has fluctuated from 33
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info