IDT Corp. Makes Offer for Two Units of WorldCom |
NEWARK, N.J. – July 2, 2002 – IDT Corporation (NYSE: IDT.B, IDT), a leading multinational carrier and telephone company, today announced it was making offers for two units of WorldCom, Inc. If consummated, the acquisition would further enhance IDT’s position as a global leader in telecommunications; help preserve the integrity and stability of the national economy and insure that MCI/WorldCom customers have continued and uninterrupted high quality telecommunications service.
IDT has forwarded to John Sidgmore, Chief Executive Officer of WorldCom, Inc., a proposal to acquire WorldCom’s MFS and Brooks Fiber units and its MCI consumer and small business long distance units for present and future consideration estimated to be $5-billion combined.
The proposal is contingent upon a definitive agreement being executed by the parties. In making the offer, IDT indicated that it may include other financial and /or telecommunications parties as partners.
IDT believes that prompt consideration to its proposal by WorldCom would help prevent further loss of customers and deterioration in value of both of these business units.
IDT CORPORATION
IDT, through its IDT Telecom subsidiary, is a leading facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. Through its own national telecommunications backbone and fiber optic network infrastructure, IDT Telecom provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT Media is the IDT subsidiary principally responsible for the Company’s initiatives in media, new video technologies and print media.
Through its various subsidiaries, IDT has interests in several telecom, Internet-related and media companies. IDT recently acquired Winstar Communications. IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT.B and IDT. As of June 10, 2002, there were 53.4 million shares of Class B common stock (IDT.B) outstanding, and 24.9 million shares of common stock (IDT). Of these, 4.0 million shares of Class B common stock and 5.4 million shares of common stock were held by units of IDT Corporation.
Except for historical information, all of the expectations and Assumptions contained in the foregoing are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and the Securities Exchange Act of 1934, involving risks and uncertainties. These statements refer to our plans to implement our growth strategy, improve our financial performance, expand our infrastructure, develop new products and services, expand our customer base and enter international markets. The forward looking statements also include our expectations concerning factors affecting the markets for our products, including the demand for long distance telecommunications, and Internet access services. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that we anticipate. These risks and uncertainties include, but are not limited to, those risks discussed in this release. In addition to the factors specifically noted in the forward looking statements, other important factors that could result in those differences include (a) general economic conditions in the telecommunications and Internet markets, including inflation,recession, interest rates, and other economic factors; (b) casualty to or other disruption of our facilities and operations; (c) those discussed in our Annual Report on Form 10K for the period ended July 31, 2001 and (d) other factors that generally affect the business of telecommunications, Internet and other communications companies. We assume no obligation to update these forward looking statements or to update the reasons actual results could differ materially from the results anticipated in the forward looking statements.
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Jul 02, 2002 |
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