Update: WorldCom, Sprint Withdraw Merger Proposal

Updated from 8:46 a.m. EDT

Just hours after the U.S. Justice Department announced that it will try to block in court the proposed merger between WorldCom (WCOM Quote) and Sprint (FON Quote), the two telecommunications giants withdrew their merger plans.

In a joint statement, the two companies announced that they were pulling their merger petition filed with the European Commission. "If, in the future, the parties decide to proceed with the merger, they will make such notifications as are appropriate under European merger laws," the companies said. ...