Why WorldCom Will Be Left Standing
No company has been rocked harder by the wake of Global Crossing's bankruptcy than fellow telecom giant WorldCom (WCOM ). Worried that the $35 billion Jackson (Miss.) carrier might be the next telecom giant to sink, investors have traded its stock down more than 70% in the past two weeks, to the $6 range. It didn't help that WorldCom recently reported fourth-quarter earnings that plummeted 60% from a year earlier. Neither did the disclosure that CEO Bernard J. Ebbers has borrowed $375 million from his own company to cover margin loans.
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