RealTime IT News

WorldCom May Sell Sprint Assets

To appease objections towards their proposed merger, WorldCom Thursday reportedly offered to sell $45 billion in Sprint assets.

According to published reports, if WorldCom sells Sprint's core wireline operations, it will mark the biggest concession ever made to resolve antitrust issues arising from a merger.

WorldCom executives are attempting to avoid blockage of a merger by the U.S. Department of Justice and the European Commission, the European Union's antitrust watchdog.

European regulators are concerned about the combined company's power over Internet pipelines and wanted WorldCom's Internet unit, UUNet, sold.

The Justice Department is alarmed by the pending loss of a powerful competitor in the U.S. long-distance business.

The companies have been struggling with ways to allay those concerns without destroying the $115 billion deal's economic benefits.

The EU said in a statement that no decision regarding the proposal has been made yet.

"The Commission wishes to emphasize that it would be premature to prejudge its decision on the proposed merger given that the deadline for the ruling is July 12 and that the merger advisory committee has not yet given its opinion," according to the statement from the EU's Washington Delegation.