Scott Moritz

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WorldCom Eyes BellSouth Exec for Top Job

Scott Moritz

Hunting for a new leader, WorldCom has dialed up BellSouth's (BLS) No. 2 executive, a person familiar with the CEO search says.

Gary Forsee, a former Sprint executive who is now vice chairman and head of BellSouth's U.S. business, could take over the top WorldCom job as early as December, say people knowledgable about the search. The change could take place once auditors and creditors are satisfied that WorldCom's fraud-plagued books have been sufficiently cleansed.

WorldCom launched a search for a new chief after current CEO John Sidgmore bowed to pressure from the company's creditors, many of whom are looking to clear the deck of WorldCom hands. Sidgmore, a former vice chairman, replaced founder Bernie Ebbers last summer. Since then the company has revealed more than $7 billion worth of accounting misdeeds. WorldCom is currently working with its creditors' committee and the bankruptcy court trustee toward a restructuring.

The sudden appearance of Forsee as a lead candidate comes as a bit of a surprise to some WorldCom watchers. Just last year Forsee was ceremoniously thrust into the No. 2 job at BellSouth and made the heir-apparent to chief Duane Ackerman, after less than two years with the company.

Forsee's possible ascendancy at a more financially solid Baby Bell suggests he may be a difficult candidate for WorldCom to reel in. On the other hand, when the company does emerge from bankruptcy, most likely under the less-tarnished MCI name, WorldCom could be a leading player in a still tumultuous communications marketplace.

BellSouth declined to comment. Forsee didn't immediately return a call seeking comment.

Some analysts and people close to the WorldCom creditors camp suggest that Sprint's No. 2 guy, Ron Lemay, is also among the top contenders for the job. But a Sprint spokesman said that the WorldCom rumor has been swirling around Lemay for at least a month. Back then, Lemay said that he "hasn't been contacted" and is "not interested" in the job.

Forsee is described by some as an ideal candidate for the WorldCom job, considering his broad and varied experience. He has held top operating positions at long-distance shop Sprint, where he ran Global One -- a failed joint venture of Sprint, France Telecom and Deutsche Telekom -- as well as at the nation's No. 3 Bell, BellSouth.

Forsee made more than $1.5 million in salary and bonuses last year and holds about $2.8 million worth of exercisable BellSouth shares.

WorldCom could announce its new CEO by year end. First, the company is expected to submit fully audited financials to the Securities and Exchange Commission by Thanksgiving, and assuming it gets an all-clear sign an executive appointment could soon follow.

Analysts say WorldCom has been able to secure many new contracts and is seeing about half of potential renewals go to competitors. That's thought to be a respectable retention rate given the state of the company and the efforts of its rivals.

There has been a growing consensus that a restructured, nearly debt-free WorldCom will re-emerge as an even more formidable competitor in the business services market. The potential for some kind of WorldCom rebirth could bestow turnaround-hero status on a risk-taking telecom executive.