WorldCom Gets Conditional DOJ Approval for Intermedia Buy
WorldCom
( WCOM) received conditional approval from the
Justice Department
to acquire
Intermedia Communications
(ICIX)
, which controls web-hosting firm
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Digex
(DIGX)
.
WorldCom will obtain a 55% equity stake and a 94% voting stake in Digex. Because of antitrust concerns, WorldCom must divest the remaining Intermedia business operations and assets.
The deal was initially valued at $3 billion in stock when it was first announced in September, but WorldCom's stock has dropped significantly since then.
In addition, the companies must still await approval from the
Federal Communications Commission
.
