Sprint accepts MCI WorldCom's $100 billion buyout offer

The secong largest telecom company in the US, Sprint has accepted the more than $100 billion offer of a buyout by MCI WorldCom, the third largest telecom company, making it the largest buyout in corporate history. The deal will create a telecommunications giant that will compare in size to AT&T. Spring rejected the $100 billion offer of BellSouth.

According to reports, the buyout values Sprint's phone business at about $76 per share in stock. MCI also will assume about $13 billion in Sprint debt. The deal is structured to protect Sprint from volatility in MCI WorldCom's stock price.

MCI WorldCom has sought Sprint largely because of its national wireless phone network. The combination also would include Sprint's Internet businesses. The deal, however, is subject to passing the stiff regulations of the US.

Most analysts said the combined companies would have to sell Sprint's extensive Internet backbone, much as MCI sold off its Net assets when it previously merged with WorldCom. Although spurned by Sprint, BellSouth still could seek parts of the long-distance carrier's business.