Verbal tango

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
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