NEW YORK (AP)-British Telecommunications plc is negotiating to buy its U.S. partner MCI Communications Corp., CNBC reported Friday.
The report said a deal could be announced as early as today and one analyst valued such a takeover at more than $20 billion.
MCI confirmed the rumor in an announcement Friday afternoon stating its board of directors is considering a possible strategic merger with BT. The company said it anticipated its deliberations would be concluded over the weekend with a possible announcement by today. MCI also said there can be no assurances that an agreement will be entered into or that any transaction will be consummated.
MCI stock was up more than 20 percent, rising $5.12 1/2 to $30.25 a share by early afternoon Friday on the Nasdaq Stock Market.
British Telecom bought 20 percent of MCI for $4.3 billion in 1994. Earlier this year, the two announced they would combine their Internet networks to set up what they said would be the world’s largest Internet provider.
