Phone merger canceled

Thursday, July 13, 2000 | 10:48 a.m.

THE ASSOCIATED PRESS

KANSAS CITY, Mo. -- WorldCom and Sprint agreed today -- as expected -- to call off their planned merger in the face of extreme opposition from regulators in the United States and Europe.

In a statement, the companies said that "the set of conditions ultimately demanded by the U.S. Department of Justice would compromise the customer and financial benefits of the merger."

Late last month, Attorney General Janet Reno announced the Justice Department was suing to block the deal. She contended that the merger of the second- and third-largest U.S. long-distance carriers would leave millions of Americans paying more for less service.

Sprint isn't for sale now, Chief Executive William Esrey said.

"We're focused on building shareholder value as we always have," Esrey said. Asked whether Sprint would buy other companies, he said, "Yes, if the deal would build size or scope."

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