Jun, 2001 : New Worldcom Tracking Stock Hits the Nasdaq
📅 - Worldcom unveiled its new MCI tracking stock this morning, one day after shareholders approved a proposal to split the company's Internet and long distance operations in to separate stocks.
Prior to the separation, all of Worldcom's operations traded under the ticker symbol WCOM on the Nasdaq. With the split, Worldcom issued stock for the company's MCI Group, which will track the company's phone, paging services and dial-up Internet services. The new stock will trade under the ticker symbol "MCIT." Meanwhile, the company's core Internet, Web hosting and corporate telephone services will continue to trade under the "WCOM" symbol, as will the company's international businesses.
Worldcom had initially proposed the plan in November of last year.
"Realigning WorldCom's structure in this way will enable the respective businesses to achieve greater management and resource focus to execute business strategies that work most effectively for each," said Bernard J. Ebbers, WorldCom's President and CEO, in a release. "At the same time, the new structure is designed to create greater shareholder value by providing two distinct, clear and compelling investment opportunities, while serving customer needs with a more efficient operation."
Worldcom said it would pay a quarterly dividend of $0.60 per share on the MCI Group stock, but "does not intend to pay dividends on the WorldCom Group stock in the foreseeable future."
Shares in MCIT were trading at $18.40 early Friday afternoon, down from its opening price of $18.64.
Prior to the separation, all of Worldcom's operations traded under the ticker symbol WCOM on the Nasdaq. With the split, Worldcom issued stock for the company's MCI Group, which will track the company's phone, paging services and dial-up Internet services. The new stock will trade under the ticker symbol "MCIT." Meanwhile, the company's core Internet, Web hosting and corporate telephone services will continue to trade under the "WCOM" symbol, as will the company's international businesses.
Worldcom had initially proposed the plan in November of last year.
"Realigning WorldCom's structure in this way will enable the respective businesses to achieve greater management and resource focus to execute business strategies that work most effectively for each," said Bernard J. Ebbers, WorldCom's President and CEO, in a release. "At the same time, the new structure is designed to create greater shareholder value by providing two distinct, clear and compelling investment opportunities, while serving customer needs with a more efficient operation."
Worldcom said it would pay a quarterly dividend of $0.60 per share on the MCI Group stock, but "does not intend to pay dividends on the WorldCom Group stock in the foreseeable future."
Shares in MCIT were trading at $18.40 early Friday afternoon, down from its opening price of $18.64.
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URL source: http://www.thewhir.com/marketwatch/worldcom608b.cfm
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