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CNN Live At Daybreak

MCI Sweetens Settlement

Aired July 03, 2003 - 06:16   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: Time for some business buzz right now though. MCI sweetens its settlement offer.
Let's get the details on the bankrupt telecom giant's latest proposal. Here's Carrie Lee at the Nasdaq market site.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.

Now remember MCI is the company formerly known as WorldCom. It's now upping the terms of its settlement with the Securities and Exchange Commission, offering shareholders of the company new company stock worth a total of $250 million. Now this comes on top of $500 million in cash that's been previously proposed. The new terms here need to be still approved by a bankruptcy court judge; but still, upping the ante for shareholders of the company. Remember WorldCom's bankruptcy was the biggest in U.S. corporate history stemming from an accounting fraud which could reach $11 billion.

Now MCI expects to emerge from bankruptcy some time this fall. The company's CFO, chief financial officer, said in a statement that this additional restitution will -- quote -- "allow shareholders and bondholders to participate in the future success of the company" -- end quote. And, Carol, let's hope the future success of the company is better than the company's past track record.

COSTELLO: Yes. Carrie Lee, many thanks. You'll join us again next half hour. We look forward to it.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired July 3, 2003 - 06:16   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for some business buzz right now though. MCI sweetens its settlement offer.
Let's get the details on the bankrupt telecom giant's latest proposal. Here's Carrie Lee at the Nasdaq market site.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.

Now remember MCI is the company formerly known as WorldCom. It's now upping the terms of its settlement with the Securities and Exchange Commission, offering shareholders of the company new company stock worth a total of $250 million. Now this comes on top of $500 million in cash that's been previously proposed. The new terms here need to be still approved by a bankruptcy court judge; but still, upping the ante for shareholders of the company. Remember WorldCom's bankruptcy was the biggest in U.S. corporate history stemming from an accounting fraud which could reach $11 billion.

Now MCI expects to emerge from bankruptcy some time this fall. The company's CFO, chief financial officer, said in a statement that this additional restitution will -- quote -- "allow shareholders and bondholders to participate in the future success of the company" -- end quote. And, Carol, let's hope the future success of the company is better than the company's past track record.

COSTELLO: Yes. Carrie Lee, many thanks. You'll join us again next half hour. We look forward to it.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com