WorldCom

( WCOM) was down 5% in late afternoon trading after

Reuters

reported that the telecommunications company and its partner,

Intermedia

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(ICIX)

, had agreed to revise the terms of their merger. The news service, quoting unnamed sources, said the move was made to appease shareholders of the Web hosting company

Digex

(DIGX)

, which is controlled by Intermedia. Digex's minority shareholders had sued to block the deal. WorldCom's stock traded in positive territory this morning. Intermedia was up 9.7%. Digex was up 12.7%.