Corporate Background WorldCom, now known as MCI, began humbly as an obscure long distance telephone company, LDDS Communications, in 1983, and rose to the second largest long-distance phone company in the United States and one of the largest companies handling worldwide Internet data traffic, with an aggressive corporate strategy of growth though acquisition (Moberg, and Romar. “WorldCom…”) With its corporate headquarters located in Clinton, Mississippi, WorldCom consisted of an employee base of
Introduction On October 4, 1999, WorldCom, Inc. and Sprint announced their plans to merge of long-distance and telecommunication markets. It was $129 million deal, which raised concerns regarding how the merger of the two largest Internet backbone providers could affect the Internet markets. According to the case description, at the time of the agreement, the two companies were the second and third largest traditional long-distance telecommunication companies in the United States, and the first
Apple Bonds in Switzerland Introduction In February 2015, Apple Inc. has completed the first issuing of bonds denominated in Swiss Franc. Apple Inc. has successfully raised 1.25 billion Swiss Francs (USD$1.35 billion) from the sale. There were two parts of bond which were 875 million Swiss Francs bond due to mature in November 2024 with coupon rate of 0.375% and a 375 million Swiss Francs 15-year bond with coupon rate of 0.75%. Due to the negative of Switzerland’s government debt yield, Apple Inc
WORLDCOM, INC: CORPORATE BOND ISSUANCE 1. IS IT A GOOD TIME FOR WORLDCOM, INC. TO ISSUE? CONSIDER FACTORS IN FAVOR AND FACTORS THAT ARE NOT IN FAVOR. Personally I believe that the time is not in favor of WorldCom in undertaking one of the largest bond issues at the time. Even though there are many advantages with proceeding with the issue, I believe that the degree and the uncertainty raised by some of the disadvantages outweigh the advantages of going ahead with the $6Billion
new corporate bond issues (and other hybrid securities) that can be accessed by sophisticated retail investors, including growth of issues by unrated companies. • Ways for retail investors to access corporate bonds have continued to develop. • Regulatory changes to reduce impediments to retail investment in corporate bonds are slowly occurring. Ultimately, the maturation of the corporate bond market depends upon three key factors: underlying demand of investors; potential supply by corporate issuers;
the complicated fraud, WorldCom fraud was the simplest to commit. WorldCom, now known as MCI and acquired by Verizon Communication since 2006, was founded in 1983 to create a discount long-distance provider. The company grew very rapidly in the 1990s due to several large acquisitions. (Beresford, Katzenbach, & C.B. Rogers, 2003) WorldCom completed 3 mergers in 1998 and one of the merger is largest at that time which is purchasing MCI Communications Inc. for $40 billion. WorldCom also merged with Brooks
Corporate bonds have had a long thriving history in the fixed income market. The first corporate bond issued dates back to the construction of railroads after the conclusion of the Civil War. Increasing in popularity each year, the corporate bond issuance rate has been on a steady incline with daily trading in the billions. Corporate bonds are very complex but simple enough to where everyone can increase their wealth by investing in them. Essentially corporate bonds are debt that a company issues
Since companies like Enron and WorldCom behaved unethically costing shareholders millions of dollars there has been a focus on a business corporate social responsibility efforts. Corporate social responsibility can be defined as anything ‘concerned with the commitment of companies to contribute to sustainable development, stakeholder interests and enhancement of societal conditions” (Luu 2). This is an important concept because it deals with the stakeholders who are going to invest in a business
There are number reasons a corporation may consider convertible bond issuance. The instrument itself is a bond that may be converted to another type of security at the company that issued the bond. Converting such an item is all left up to the discretion of the bondholder. The reason for a company to want to issue such an item of course would always be in the best interest of the company itself for doing so. Convertible bonds are considered what is known as a hybrid security where it is considered
INTRODUCTION: WorldCom was U.S based Telecommunications Company. It was second greatest long partition phone association in U.S., which had been working together since 19th century. It was built up in 1968. It was the benchmark long partition telecom and web access. Today, it is perhaps best known for a bookkeeping embarrassment that stimulated the association shred for insolvency security in 2002. WorldCom overseers effectively exaggerated the association 's bookkeeping numbers, enlargement the