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
Elinor Ostrom -- an American professor who developed ways to manage common property - is the first woman to win the Nobel prize for economics.
more »
The European Commission has today approved an application from the Netherlands under the Globalisation Adjustment Fund (EGF) for € 386 114 to help 435 workers made redundant by Heijmans N.V., a Dutch construction company, back into jobs.
more »
Seeking to strengthen and further expand product sales in the Asian region, the Lithuanian biotechnology company Fermentas established its subsidiary in China.
more »
Statistics Lithuania reports that, based on non-final data obtained from customs declarations and Intrastat reporting data, exports in January–August 2009 totalled LTL 25.6 billion, while imports – LTL 28.9 billion.
more »
On 6 October 2009 AB Bank SNORAS Board decided to reform the Private Limited Company UAB “SNORO investicijų valdymas” into the Public Limited Company AB „Finasta Holding“, which will control recently obtained „Finasta“ group companies and other Bank SNORAS group companies, engaging in investment management.
more »
If your airline goes bankrupt and leaves you stranded what are your legal rights? Members of the Parliament's Transport Committee want grounded passengers to have access to a special compensation fund.
more »
Euro report says currency provided protection from interest and exchange rate turbulence.
more »
Statistics Lithuania informs that in September 2009, against August, prices for total industrial production sold dropped by 1.6 per cent.
more »
The European Bank for Development and Reconstruction (EBRD), the European Investment Bank (EIB) Group, and the World Bank Group* on Monday warned against complacency in the face of significant challenges that stand in the way of economic recovery in Central and Eastern Europe.
more »
The leader of the country’s investment products’ market – AB DnB NORD Bankas – intends to issue up to EUR 300 million nominal value corporate notes in local and foreign markets over the next 12 months.
more »