MCI WorldCom, C&W Settle Squabble
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The $200 million payment is in addition to $23 million awarded to Cable and Wireless in December by an independent arbitrator pursuant to post-closing adjustment procedures in the parties' agreement.
Cable and Wireless filed suit against MCI WorldCom a year ago alleging it had not delivered what was promised when it bought the business, particularly with regard to key personnel and customer information.
"The settlement of this dispute will enable us to totally focus on building on our unique position in IP and accelerate our strategy of significant expansion in the fast growing market of data and Internet services for business customers," McTighe said.
Cable and Wireless bought MCI's Internet business in 1998 after antitrust regulators ordered the sale as part of MCI's merger with WorldCom.
MCI WorldCom is currently attempting to close its estimated $129 billion merger with Sprint Corp. (FON). Should the merger be approved, MCI WorldCom's most immediate plans include offering innovative broadband access and nationwide digital wireless voice and data services on a global scale.