WASHINGTON-Spain’s Telefonica has announced it will partner with United States-based WorldCom and MCI in a partnership for future business ventures in Europe and the Americas. This follows the collapse of Telefonica’s planned relationship with British Telecommunications plc.
The three companies said the new relationship builds upon terms of the pan-American joint venture created by MCI and Telefonica last April and allows for Telefonica to take a minority equity position in WorldCom’s current and future European businesses.
“We have chosen the best partners to help broaden our reach in Europe, consolidate our market leadership in the Spanish-speaking world and move forward with new investment opportunities in Latin America, particularly in Brazil, which will be our principle focus during 1998,” said Telefonica Chairman and Chief Executive Officer Juan Villalonga.
The merger of WorldCom and MCI is expected to be completed by mid-year, said the companies. Shareholders of WorldCom and MCI recently approved the merger.
