One man's poison

12 July 2004 By Rob Cox Follow @rob1cox

Leucadia National is seeking regulatory clearance to buy at least half of the former WorldCom s stock. Here is one of those examples where a poison pill may function as a necessary evil in American corporate governance.

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MCI said Leucadia National, a listed investment company, is seeking approval from regulators to buy more than half of the telecoms group's shares just three months after it emerged from the bankruptcy of WorldCom.

Leucadia last year bought WilTel Communications out of bankruptcy.

MCI, the former WorldCom, had a market cap of about $4.5bn at the end of last week. Its shares rose some 10% on the announcement.

To acquire a controlling stake in MCI, Leucadia would need antitrust clearance under the HartScottRodino Act, as well as approval from the Federal Trade Commission and Justice Department.

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