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CNN Live At Daybreak
Rudy Giuliani Wanted as CEO at WorldCom
Aired November 18, 2002 - 06:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A lot of people used to think New York City was corrupt and bankrupt before former Mayor Rudy Giuliani helped turn things around. And now one big investor thinks he'd be the perfect CEO to help a bankrupt company clean up its act and get back on its feet.
Susan Lisovicz joins us now from New York with that story.
So, Rudy as CEO, huh?
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: You know this is a guy who doesn't shrink from a challenge, you know.
COSTELLO: No.
LISOVICZ: And this is no ordinary bankruptcy, Carol, this is the biggest corporate bankruptcy in U.S. history.
Carol, "The Wall Street Journal" is reporting that the head of a big bond investing group wants Rudy Giuliani to push WorldCom back to life. WorldCom named former Compaq chief Michael Capellas as its new chairman and CEO last week, but a big WorldCom bond investor says Capellas would be wise to split up that job and allow Giuliani to act as chairman of the board. This could be the beginning of a big power struggle at the nation's No. 2 long distance company.
WorldCom stock plummeted and it was forced to declare bankruptcy after it admitted accounting fraud now totaling more than $9 billion. So far Capellas has been all smiles in public saying only very nice things about Giuliani; but, Carol, these are two guys not known for sharing power.
COSTELLO: Oh definitely. I know one guy who is hoping Rudy Giuliani takes over, that's Chad. What you'd buy WorldCom at seven cents?
CHAD MYERS, CNN METEOROLOGIST: Seven cents, it's 21 now.
COSTELLO: Seven cents a share.
MYERS: Twenty-one cents.
LISOVICZ: This is -- Chad, well you...
MYERS: Almost a quarter.
LISOVICZ: You know you're an optimist I guess it could be said. COSTELLO: He's pulling for Rudy.
Hey, the markets have been on a winning streak lately, talking about the price of shares. Will the winning streak continue?
LISOVICZ: Well the futures right now look positive. It looks, Carol, like we're going to have some positive carryover from Friday and it has been a great streak. The Dow industrials up six consecutive weeks, the best period that they've had in three years, of course it has to be said coming off of multi-year lows. Nasdaq also a winning week as well. Looks like a quiet day. We don't really have any market moving news at this point. But, yes, looks like positive momentum at least for the start at this early point.
COSTELLO: Well, we're loving that, Susan, thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
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Aired November 18, 2002 - 06:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A lot of people used to think New York City was corrupt and bankrupt before former Mayor Rudy Giuliani helped turn things around. And now one big investor thinks he'd be the perfect CEO to help a bankrupt company clean up its act and get back on its feet.
Susan Lisovicz joins us now from New York with that story.
So, Rudy as CEO, huh?
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: You know this is a guy who doesn't shrink from a challenge, you know.
COSTELLO: No.
LISOVICZ: And this is no ordinary bankruptcy, Carol, this is the biggest corporate bankruptcy in U.S. history.
Carol, "The Wall Street Journal" is reporting that the head of a big bond investing group wants Rudy Giuliani to push WorldCom back to life. WorldCom named former Compaq chief Michael Capellas as its new chairman and CEO last week, but a big WorldCom bond investor says Capellas would be wise to split up that job and allow Giuliani to act as chairman of the board. This could be the beginning of a big power struggle at the nation's No. 2 long distance company.
WorldCom stock plummeted and it was forced to declare bankruptcy after it admitted accounting fraud now totaling more than $9 billion. So far Capellas has been all smiles in public saying only very nice things about Giuliani; but, Carol, these are two guys not known for sharing power.
COSTELLO: Oh definitely. I know one guy who is hoping Rudy Giuliani takes over, that's Chad. What you'd buy WorldCom at seven cents?
CHAD MYERS, CNN METEOROLOGIST: Seven cents, it's 21 now.
COSTELLO: Seven cents a share.
MYERS: Twenty-one cents.
LISOVICZ: This is -- Chad, well you...
MYERS: Almost a quarter.
LISOVICZ: You know you're an optimist I guess it could be said. COSTELLO: He's pulling for Rudy.
Hey, the markets have been on a winning streak lately, talking about the price of shares. Will the winning streak continue?
LISOVICZ: Well the futures right now look positive. It looks, Carol, like we're going to have some positive carryover from Friday and it has been a great streak. The Dow industrials up six consecutive weeks, the best period that they've had in three years, of course it has to be said coming off of multi-year lows. Nasdaq also a winning week as well. Looks like a quiet day. We don't really have any market moving news at this point. But, yes, looks like positive momentum at least for the start at this early point.
COSTELLO: Well, we're loving that, Susan, thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
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