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CNN Live At Daybreak
MCI Hoped to Emerge From Chapter 11 This Fall
Aired August 05, 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 a little business buzz right now. When that phone bill arrives, it can stir a little household argument. But when one phone company is checking into another company's bills, it's called mud slinging.
Let's get the scoop from Carrie Lee live in New York.
Good morning -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol.
MCI punching back. AT&T and some other telecom companies have accused MCI of illegally routing phone calls through Canada in order to save access fees. Well MCI now is denying allegations that it did reroute these calls to save money. Now remember, AT&T and other telecom companies accused MCI of routing these calls. The U.S. government since then has launched an inquiry into the accusations and the General Services Administration also said that it has suspended MCI from getting new government contracts.
Now MCI, the company formerly known as WorldCom, is currently in bankruptcy. They are hoping to emerge in the fall. Basically, MCI is saying that its competitors are trying to throw a monkey wrench into that emergence from bankruptcy, trying to tie up this emergence. But still, MCI, as a result of this, may have to restate some of its financial results and that may throw a monkey wrench into this bankruptcy emergence.
But MCI, basically, Carol, saying that it did nothing wrong, calling the allegations -- quote -- "frivolous to the core." So we'll see what happens.
COSTELLO: All right, yes, we will.
Quick look at the futures before you go.
LEE: Things look pretty flat right now. We do get a reading on the services sector of our economy a half an hour into trading at 10:00 a.m. Eastern so that could affect trading. One stock to watch, Cisco Systems, the networking gear company reporting results for the recent quarter after the closing bell. The stock did get a nice upgrade yesterday from SG Cowen. We'll see what it does today once the session starts -- Carol.
COSTELLO: All right, we'll get back to you. Carrie Lee live from the Nasdaq site in New York City.
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 August 5, 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 a little business buzz right now. When that phone bill arrives, it can stir a little household argument. But when one phone company is checking into another company's bills, it's called mud slinging.
Let's get the scoop from Carrie Lee live in New York.
Good morning -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol.
MCI punching back. AT&T and some other telecom companies have accused MCI of illegally routing phone calls through Canada in order to save access fees. Well MCI now is denying allegations that it did reroute these calls to save money. Now remember, AT&T and other telecom companies accused MCI of routing these calls. The U.S. government since then has launched an inquiry into the accusations and the General Services Administration also said that it has suspended MCI from getting new government contracts.
Now MCI, the company formerly known as WorldCom, is currently in bankruptcy. They are hoping to emerge in the fall. Basically, MCI is saying that its competitors are trying to throw a monkey wrench into that emergence from bankruptcy, trying to tie up this emergence. But still, MCI, as a result of this, may have to restate some of its financial results and that may throw a monkey wrench into this bankruptcy emergence.
But MCI, basically, Carol, saying that it did nothing wrong, calling the allegations -- quote -- "frivolous to the core." So we'll see what happens.
COSTELLO: All right, yes, we will.
Quick look at the futures before you go.
LEE: Things look pretty flat right now. We do get a reading on the services sector of our economy a half an hour into trading at 10:00 a.m. Eastern so that could affect trading. One stock to watch, Cisco Systems, the networking gear company reporting results for the recent quarter after the closing bell. The stock did get a nice upgrade yesterday from SG Cowen. We'll see what it does today once the session starts -- Carol.
COSTELLO: All right, we'll get back to you. Carrie Lee live from the Nasdaq site in New York City.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com