Message-ID: <5729552.1075857217266.JavaMail.evans@thyme> Date: Wed, 1 Nov 2000 01:15:00 -0800 (PST) From: fool@motleyfool.com To: benjamin.rogers@enron.com Subject: Breakfast With The Fool: WorldCom to Split Into Two Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: The Motley Fool X-To: benjamin.rogers@enron.com X-cc: X-bcc: X-Folder: \Benjamin_Rogers_Dec2000_2\Notes Folders\Discussion threads X-Origin: Rogers-B X-FileName: brogers.nsf _________________________________________________________________ B R E A K F A S T W I T H T H E F O O L Wednesday, November 1, 2000 benjamin.rogers@enron.com _________________________________________________________________ REGISTER TO BECOME A FOOL -- GET FREE STUFF! http://www.fool.com/m.asp?i=177642 _________________________________________________________________ Sponsored By: MUTUALS.com Get a FREE portfolio analysis and recommendation. Plus, buy or consolidate over 10,600 mutual funds, only at MUTUALS.com. Get your free portfolio checkup now. http://www.lnksrv.com/m.asp?i=177643 "The prime purpose of eloquence is to keep other people from talking." -- Louis Vermeil WORLDCOM TO SPLIT INTO TWO Telecom company WorldCom is going to create a tracking stock for its MCI division. By LouAnn Lofton In an effort to boost its sagging stock price, and unlock greater opportunities for the parts of its business that are growing the quickest, telecommunications company WorldCom (Nasdaq: WCOM) announced restructuring plans this morning. The company, which has seen its stock tumble from a 52-week high in November 1999 of $61.33 to its current price of around $23, will create a tracking stock for its MCI business. The ticker for the new stock will be MCIT. WorldCom shareholders will receive one share of MCI for every 25 shares of WorldCom they own. The distribution of MCI stock is expected to happen by the end of the first half of 2001. Tracked under the new MCIT ticker will be WorldCom's slowest-growing divisions. The bulk of the operations that will be reflected with the tracking stock are WorldCom's long-distance and dial-up Internet services for consumers and small businesses. These parts of WorldCom's business generate about $16 billion in annual revenues. The split leaves WorldCom with the best-performing and highest-growth businesses. That includes its Internet and data businesses, its international business, and its wireless business. These divisions of WorldCom contribute annual revenues of around $23 billion, with $16 billion coming from the company's data, Internet, and international operations. WorldCom also issued earnings guidance this morning. The company said it sees fourth-quarter earnings per share coming in between $0.34 and $0.37. Analysts as polled by First Call/Thompson Financial were looking for $0.49 a share. The company pointed to "intense pricing pressures, unfavorable foreign exchange rates and the shift of consumer voice to wireless technologies" as the reasons for the shortfall. It also lowered expectations for its next fiscal year. WorldCom's decision to split its businesses comes not long after a similar move from competitor AT&T (NYSE: T), which announced last week that it will split itself into four parts. http://www.fool.com/m.asp?i=177644 _________________________________________________________________ NEWS TO GO Health insurance company Aetna (NYSE: AET) announced third-quarter earnings this morning. Operating earnings, excluding onetime items, dropped to $158.1 million from $184.1 million last year. On a per-share basis, that translates into $1.10 a share, versus $1.21 a year ago. Analysts were expecting $0.90 a share. Revenues climbed 15% to $8.1 billion. In last year's third quarter, Aetna's revenues were $7.1 billion. Airborne Freight (NYSE: ABF) reported a third-quarter loss last night that was greater than had been expected. The company lost $5.5 million in the quarter, or $0.11 a share. It warned analysts in September to look for a loss of between $0.05 and $0.10 a share. Previously, analysts had expected a profit of $0.28 a share. After the September warning, the consensus estimate fell to a loss of $0.07 a share. Airborne Freight blamed high fuel costs and softness in its core domestic business for the shortfall. In last year's third quarter, Airborne Freight earned $21.6 million, or $0.44 a share. Broadband company Covered Communications (Nasdaq: COVD) acknowledged today that CEO Robert Knowling will resign. This comes just two weeks after Covad reported a wider-than-expected loss for the third quarter. The company's stock has been pounded this year, falling from a high of $66.63 to around $5 a share. Frank Marshall, one of Covad's directors, has been named interim CEO. Former chief and founder Charles McMinn will assume the role of chairman. Computer Sciences (NYSE: CSC), the information technology services company, announced that it's inked a $2.2 billion agreement with British defense contractor BAE Systems. The agreement is for six years and replaces a current agreement between the two which expires in March 2004. Under the deal, Computer Sciences will manage BAE's IT infrastructure in the United Kingdom and here in the states. Get all of yesterday's market Foolishness in just one click. http://www.fool.com/m.asp?i=177645 _________________________________________________________________ EDITORS' PICK CEO Pat Garner just isn't scared by Fools. In fact, he fits right in, Jester cap and all. 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MsgId: msg-30584-2000-11-01_9-07-28-3284809_2_Plain_MessageAddress.msg-09:12:04(11-01 -2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com