WorldCom, Sprint Withdraw EU Merger Plan

SAN FRANCISCO (06/27/2000) - In the latest sign of trouble for their US$115 billion planned merger, WorldCom Inc. and Sprint Corp. announced this afternoon that they have withdrawn their merger notification filed with the European Commission.

The decision was made in light of the U.S. Department of Justice's (DOJ's) announcement earlier today that it had filed suit to block the merger, the companies said in a statement. The DOJ said it opposes the merger on the grounds that it would lead to higher prices for millions of U.S. consumers.

"If, in the future, the parties decide to proceed with the merger, they will make such notifications as are appropriate under European merger laws," WorldCom and Sprint said in the statement issued this afternoon.

The decision also comes after the European Union Competition Commissioner, Mario Monti, said in Washington this morning that he will likely try to block the deal from going ahead in Europe.

WorldCom, in Jackson, Mississippi, can be reached at +1-601-360-8600 or http://www.wcom.com/. Sprint, in Westwood, Kansas, can be reached at +1-913-624-3000 or http://www.sprint.com/. The DOJ, in Washington, D.C., can be reached at http://www.usdoj.gov/.

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