Bt, Mci Deal

British Teleco-mmunications will know by today whether its plan to merge with MCI of the US has found favour with its 2.3 million investors. The extraordinary general meeting to approve the deal that will form Concert plc is being held at the Wembley Conference Centre, north London. As the climax to several weeks of roadshows across the country, a few thousand shareholders are expected to attend to give their verdict on the proposed $20 billion (12.3 billion) merger. The big institutional investors, which hold 77 per cent of BTs equity, are unlikely to intervene: no one expects the merger to fall at this hurdle.

 

Two weeks ago MCIs shareholders overwhelmingly backed the deal which will create a global supercarrier with the strength, depth and capacity to offer services to customers around the world. They will have been tempted as much by the commercial terms as by its industrial logic. MCI shareholders will receive 5.4 Concert shares, in the form of American Depositary Shares, and a cash payment of $6 for each MCI share. Approval is still required from the European Commission, the US Federal Communications Commission and the US Department of Justice. The EC seems likely to give its approval in the next few weeks, ahead of schedule and after demanding few concessions. The concessions include modifications to the two companies dominant position in audio and video conferencing and guarantees that competitors can have reasonable access to the new companys transatlantic facilities. US regulators are expected to take until the end of the summer to make a decision, which is likely to be favourable. With Global One, the alliance between Deutsche Telekom, France T